The Deposit of Cash by the Owner in the Name

question 30

Multiple Choice

The deposit of cash by the owner in the name of the business would involve

• A) increasing an asset and increasing a liability.
• B) increasing an asset and increasing owner's equity.
• C) decreasing an asset and increasing owner's equity.
• D) increasing an asset and increasing revenue.

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Definitions:

Adjustable Rate Mortgages

Home loans with interest rates that can change over time, often linked to a specific index or benchmark.

Foreclosure Rates

The percentage of properties undergoing the legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.

Prime Borrowers

Individuals who are considered low-risk by lenders due to their excellent credit history and are thus likely to receive better loan terms.

Government-sponsored Enterprises

Special financial services corporations created by the United States Congress to enhance the flow of credit to specific sectors of the economy, such as housing.