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:

Partnerships

A legitimate business setup where two or more partners manage the company and share its earnings.

General Partnership

A business structure where two or more partners share unlimited liability for the debts and obligations of the business.

Sole Proprietorship

A business structure owned by a single individual, where the owner and the business are legally considered the same entity, simplifying operations but also involving personal liability.

Limited Partnership

A partnership structure where some partners are liable only to the extent of their investment while at least one partner has unlimited liability.