analyze the following transaction and select the best answer. tyler invests $2,000 cash in exchange for…

analyze the following transaction and select the best answer. tyler invests $2,000 cash in exchange for common stock, to begin a new company, tylers tayloring. this transaction will: \n○ increase expenses by $2,000.\n○ increase liabilities by $2,000.\n○ increase equity by $2,000.\n○ decrease assets by $2,000.

analyze the following transaction and select the best answer. tyler invests $2,000 cash in exchange for common stock, to begin a new company, tylers tayloring. this transaction will: \n○ increase expenses by $2,000.\n○ increase liabilities by $2,000.\n○ increase equity by $2,000.\n○ decrease assets by $2,000.

Answer

Brief Explanations:

When Tyler invests $2,000 cash in exchange for common - stock, cash (an asset) increases by $2,000 and common stock (equity) also increases by $2,000. Equity represents the owner's claim on the assets of the business. This investment does not affect expenses or liabilities, and assets actually increase, not decrease.

Answer:

Increase equity by $2,000.