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Question - Miss Wright, the owner, takes $24,000 from a personal bank account and puts the money in the business checking account.
Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, and the Owner's Equity account?
Check all that apply.
An asset account increases.
An asset account decreases.
A liability account increases.
A liability account decreases.
Owner's Equity increases.
Owner's Equity decreases.
Write a brief explanation about why the directors' duty to prevent insolvent trading exists and the circumstances and consequences of the 'veil of incorporation' being lifted for insolvent trading.
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