An account used to record the owner's investments in a business is called a(n):
A) Capital account.
B) Expense account.
C) Liability account.
D) Withdrawals account.
E) Revenue account.

Question

Quizplus · Accepted Answer

A Capital account is used by the owner of a business to record their investments in the business. This account tracks the owner's equity in the business, which is the difference between the assets and liabilities of the business. The other accounts listed (Expense, Liability, Withdrawals, and Revenue) are not used to record the owner's investments in the business.

An Account Used to Record the Owner's Investments in a Business