Asked by Gilberto Camacho on Jul 18, 2024
Verified
When an owner invests assets in the business, the capital account increases due to revenue being earned.
Capital Account
An account on the balance sheet representing the original investment by the owners plus any retained earnings.
Owner Invests
The action taken by an owner to contribute resources, such as cash or other assets, into the business for its use.
Revenue
The aggregate revenue derived from selling goods or services that are fundamental to an organization's main activities.
- Gain insight into the ways different transactions impact the equity of the owner.
Verified Answer
5F
5sosfan fics1996Jul 20, 2024
Final Answer :
False
Explanation :
When an owner invests assets in the business, the capital account increases due to a capital contribution, not revenue being earned.
Learning Objectives
- Gain insight into the ways different transactions impact the equity of the owner.