Asked by Megan Quinn on May 12, 2024
Verified
When the owner invests personal equipment in the business, cash is decreased.
Personal Equipment
Tangible items owned by an individual for personal use, not for business or commercial purposes.
Cash
Currency and other liquid instruments such as checks and bank deposits that are readily available for use in transactions and other immediate needs.
- Comprehend the effects of transactions on the balances of accounts.
Verified Answer
CD
Casey DitkowskyMay 17, 2024
Final Answer :
False
Explanation :
When the owner invests personal equipment in the business, it does not affect the cash balance. Instead, it increases the assets of the business through the equipment account, not by decreasing cash.
Learning Objectives
- Comprehend the effects of transactions on the balances of accounts.