Does The Owner Invest Cash Affect Liability Or Owner's Equity ?


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Aisha Profile
Aisha answered
The owners investment in a business would affect the Owner's equity section in the Balance sheet. It would increase the Owner's equity. However, it is not a liability so liability would be unaffected.
Ryan Rugraff Profile
Ryan Rugraff answered
It actually effects both, but affects neither.... Sorry semantics. It lowers an owner's liability (outstanding debt) and increases an owner's equity.

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