A cash investment made by the owner should be recorded on the?

Question: A cash investment made by the owner should be recorded on the?

A cash investment made by the owner should be recorded on the owner's equity account. This is because the owner is contributing capital to the business, which increases the owner's claim on the assets of the business. The owner's equity account is part of the balance sheet, which shows the financial position of the business at a given point in time. The balance sheet follows the accounting equation: Assets = Liabilities + Owner's Equity. Therefore, when the owner invests cash in the business, the assets and the owner's equity both increase by the same amount.

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