Accounting · Accounting Equation
According to the accounting equation, what is the immediate effect of introducing fresh capital into a business by the owner?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It decreases Assets and increases Owner's Equity.
- 2It increases Liabilities and increases Owner's Equity.
- 3It increases Assets and increases Owner's Equity.✓
- 4It increases Assets and increases Liabilities.
Correct answer
It increases Assets and increases Owner's Equity.
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