An Owner's Investment in a Business Always Creates an Asset

question 70

True/False

An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.)

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Definitions:

Bankruptcy Legislation

Refers to laws that govern the process through which individuals or entities who are unable to meet their financial obligations can seek relief from some or all of their debts.

Dual Purpose

Refers to an item or activity designed for two distinct functions or goals, often seen in tax, legal, or functional contexts.

Dischargeable Debts

Debts that can be wiped out or eliminated in bankruptcy proceedings.

Good Faith

Acting with honesty and integrity in dealings, without the intent to defraud or seek unfair advantage.