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PLEASE HELP :(
A transaction that involves investing cash in a business, why is it usually debited, shouldn't it be a decrease (credit)? Just a little confused.

Respuesta :

Answer:

A transaction that involves the investment of cash in a business is debited because

1) For a business to invest cash for their expansion, involves the reduction of finances in the available revenue or profit for the purchase of equipment, property and software for internal use, for which money has to be drawn, which is a form of b=debit

2) For an owner investing money into his business, is taken as an increase in the amount the business owes the owner, which is equivalent to amount owed the owner which has to be recorded as a debit for financial accounting

Explanation: