AE for Additional Capital

Q.

The owner contributes his/her personal truck to the business. On one hand, the assets of the business shall increase along with an equal increase in ___

1. None of the above

2. Capital

3. Liabilities & Capital

4. Liabilities

Q.

The owner introduces his personal car into business. Which of the following is true?

1. Assets - Increase
   Liabilities - No effect
   Capital - Increase

2. Assets - No effect
   Liabilities - Increase
   Capital - Increase

3. Assets - Decrease
   Liabilities - No effect
   Capital - Decrease

4. Assets - Decrease
   Liabilities - Increase
   Capital - No effect