how-does-a-45000-cash-contribution-from-an-owner-affect-the-companys-financial-p

Question

How does a $45,000 cash contribution from an owner affect the company's financial position?

Accepted Answer

It improves the company's liquidity and increases equity.

Answer

It decreases the company's liabilities and increases expenses.

Answer

It increases the company's liabilities and decreases equity.

Answer

It has no effect on the company's financial position.

How does a \$45,000 cash contribution from an owner affect the company's financial position?