Accounting Equation & Owners Equity Question

by Jane
(New Zealand)

If an owner invests more money into the business do the assets increase or liabilities increase?

Comments for Accounting Equation & Owners Equity Question

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Yes
by: Anonymous

If you invest money in a company the proforma entry will be:

Cash XX
Capital xx

So basically, your asset (cash) will increase so as your owners equity (capital).

Accounting Equation & Owners Equity Question
by: bino

Asset always increases if owner invests, liability will increase if the funding is from loans

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