A friend of the owners contributes $40000 to become a part owner. Select the flows and accounts that the business would use to record this transaction.
Question
Solution 1
This transaction would be recorded as follows:
Cash Flow: The business would record an inflow of cash as the friend has contributed $40000 to the business. This would be recorded under the financing activities in the cash flow statement as it involves owners' equity.
Equity: The equity of th Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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