An account used to record the stockholders' investments in a business is called a(n):
A)Dividends account.
B)Common stock account.
C)Revenue account.
D)Expense account.
E)Liability account.

Question

Quizplus · Accepted Answer

The common stock account is used to record the stockholders' investments in a business. Dividends account is used to record the distribution of profits to stockholders. Revenue account is used to record the sales or income earned by the business. Expense account is used to record the costs incurred by the business. Liability account is used to record the obligations of the business to pay debts or other liabilities.

An Account Used to Record the Stockholders' Investments in a Business