Final answer:
The contribution of a personal truck by an owner to a business increases both assets and owner's equity, with no effect on liabilities.
Step-by-step explanation:
When the owner contributes his/her personal truck to the business, the following effects occur on the company's finances:
- Assets: Increase because the truck is added to the business assets.
- Liabilities: No effect as there's no additional debt incurred from the contribution.
- Owner's Equity: Increase because the value of the truck is added to the owner's equity.
In accounting terms, since the truck is considered an asset, its value is recorded as an increase in the assets column of the balance sheet. There is no liability created as the truck is not purchased on credit or with a loan. Owner's equity increases because the business now has an additional asset without incurring any debts, reflecting the owner's increased investment in the business.
Therefore the correct answer is c) Owner's Equity.