Which of the following transactions would cause an asset to increase and the owner's equity to increase?
A) The owner invested cash in the business.
B) The business incurred an expense on credit.
C) The business bought supplies on account.
D) The owner withdrew cash from the business.

Question

Quizplus · Accepted Answer

When the owner invests cash in the business, the asset (cash) increases as it is now owned by the business, and the owner's equity also increases as they have contributed more capital to the business.

Which of the Following Transactions Would Cause an Asset to Increase