Which of the Following Would Result If the Owner Invested

question 106

Multiple Choice

Which of the following would result if the owner invested cash in the business?

• A) Cash would increase and Capital would decrease.
• B) Cash would increase and Capital would increase.
• C) Cash would decrease and Capital would increase.
• D) An investment by the owner is not a business transaction.

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Definitions:

Bank Statement

A document issued by a bank detailing the transactions in an account over a specific period, showing deposits, withdrawals, and balances.

Postdated Check

A check written with a future date, delaying the ability of the recipient to cash or deposit it until that date.

Dishonored

Refers to a financial instrument, such as a check or promissory note, that has been refused payment when presented.

Landlord

A person who owns real property and who rents or leases it to someone else. Also called lessor.