invests money into his business. The two accounts affected are:
A) an asset and a liability.
B) an asset and an equity.
C) a liability and an equity.
D) two asset accounts.

Question

Quizplus · Accepted Answer

When an owner invests money into their business, it increases the assets of the business (cash or equivalent) and simultaneously increases the owner's equity. This reflects the owner's claim against the assets.

Invests Money into His Business