babiibri4365 babiibri4365
  • 22-01-2020
  • Business
contestada

An investment of cash by stockholders into the business will

Respuesta :

beritop1089
beritop1089 beritop1089
  • 29-01-2020

Answer:

Increase shareholder's equity

Explanation:

When investors provide cash(capital) to a business through purchasing the company's shares, this increases the amount of their ownership hence increases the equity. Equity amount is recorded in the balance sheet. Another way a company raises capital is by borrowing debt which increases the amount of its liability.

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