An account used to record 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

A common stock account is used to record stockholders' investments in a business. Dividends account is used to record payments made to stockholders, revenue account is used to record sales and other income, expense account is used to record expenses incurred by the business, and liability account is used to record obligations owed by the business.

An Account Used to Record Stockholders' Investments in a Business