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

question 93

Multiple Choice

An account used to record the owner's investments in the business plus any more or less permanent changes in the equity is called a(n)

• A) withdrawals account
• B) capital account
• C) asset account
• D) expense account
• E) revenue account

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Definitions:

Journal Entries

Journal entries are the initial records of financial transactions in the accounting process, indicating the debit and credit impact on specific accounts.

Creditor Relationship

The financial and business dynamics between a creditor, who extends credit, and a debtor, who owes the creditor money.

Owner Relationship

The legal and managerial relationship between the owner(s) of a business and the business entity itself.

Automotive Parts

Components and replacements parts specifically designed for use in motor vehicles, including both original equipment (OEM) and aftermarket parts.