Multiple choice

An owner investing in his/her business would result in...

  1. A credit to cash

  2. A credit to Capital

  3. A debit to capital

  4. A debit to accounts payable

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When an owner invests in the business, the business receives cash (debit) and the owner's equity increases. Increases in equity are recorded as credits.