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Question

The investment of cash into the business results in an

A
Increase in cash and a decrease in capital
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B
Increase in cash and an increase in capital
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C
Decrease in cash and an increase in capital
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D
Increase in fees earned and an increase in capital
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Solution

The correct option is B Increase in cash and an increase in capital
The investment of cash into business shall result in an increase in cash and an increase in capital.

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