What accounts are affected by an initial investment of cash by an owner into his business?
A)Cash and Owner payable
B)Cash and Long-term debt payable
C)Owner payable and Accounts payable
D)Cash and Capital
E)Cash and Retained earnings

Question

Quizplus · Accepted Answer

When an owner invests cash into their own business, it increases the business's cash account and also increases the owner's capital account. Therefore, the accounts affected are Cash and Capital.

What Accounts Are Affected by an Initial Investment of Cash