Suppose the owners of the bank contribute an additional $175 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account a

Respuesta :

Answer: increase; capital account

Explanation:

This would increase the securities account and increase the capital account.

When owners of a company put in their own money, it increase the capital of the company and this is reflected in the capital account. This is why the sale of shares to equity holders increases the capital account.

The owners of the bank in this instance, put forward additional cash. from their own funds This will therefore increase the capital of the bank and be reflected as an increase in the capital account.

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This would increase the securities account and increase the capital account.

What is capital?

Capital can be defined as the amount used in commencing a business. Firms, businesses require opening capital to begin or start off their operations.

At any point owners of a company put in their own money, it will increase the capital of the company hence reflect in the capital account. This is why the sale securities to holders increases the capital account.

Hence, additional input would increase the securities account and increase the capital account.

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