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An individual invests $10,000 to open a new business. What is the effect on assets?

a)No effect on assets
b)Increase in total assets
c)Decrease in total assets

1 Answer

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Final answer:

When an individual invests $10,000 to open a new business, it has an increase in total assets. The $10,000 investment becomes part of the business's cash or bank account, increasing the total assets of the business.

Step-by-step explanation:

When an individual invests $10,000 to open a new business, it has an increase in total assets. The $10,000 investment becomes a part of the business assets. Assets are the resources owned by a business that have a monetary value, such as cash, equipment, inventory, and investments. In this case, the $10,000 investment becomes part of the business's cash or bank account, increasing the total assets of the business.

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