An investment by the stockholders in a business increases O assets and stockholders' equity. assets only....

Question

Question

An investment by the stockholders in a business increases O assets and stockholders equity. assets only. O liabilities and s

business accounting

Answer 1

Answer #1

Solution

The correct answer is a) Asset & Stockholder's equity

An investment by the stockholders in a business increases its asset & stockholder's equity

The accounting equation is Assets = Liabilities + Owner's (Stockholders') Equity.

Stockholder's investment into the company will increase the company's assets and will also increase owner's equity.

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Answer 2

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