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

Question

Quizplus · Accepted Answer

The capital account is used to record the owner's investments in the business. This account reflects the amount of money the owner has invested in the business and represents their equity in the company. Withdrawals account is used to record money taken out by the owner, revenue and expense accounts record the business's financial transactions, and liability accounts reflect debts owed by the business.

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