Question

Which of the following will be recorded in the owner’s equity column as an increase

Answer 1

The answer to the question is "An investment by the owner"

Answer 2

The choices are:

A. an exchange of assets

B. the purchase of an asset on credit

C. an investment by the owner

D. a withdrawal by the owner

The purchase of an asset on credit will be recorded in the owner's equity column as an increase.

To add, the owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.