Ask Question
15 January, 03:19

Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected. Unabe to copy options

+4
Answers (1)
  1. 15 January, 03:31
    0
    Assets would be increased by $15,000 while owner's equity will also increase by $15,000.

    Explanation:

    The accounting equation shows the relationship between the elements of a balance sheet which are assets, liabilities and owner's equity.

    it is given as

    Assets = Liabilities + Owners equity

    When a business owner invests an amount into a business, it means money is available for the business to operate hence cash is recognized as an asset. However, the owners equity also goes up by the amount invested.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the business cash ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers