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.
