The owner's capital account increases with each capital contribution made by the owner.

Name: The owner's capital account increases with each capital contribution made by the owner.
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Question

Quizplus · Accepted Answer

The owner's capital account represents the owner's stake in the business. Each time the owner makes a capital contribution (i.e., invests more money into the business), their share of ownership and their capital account balance will increase. Therefore, the statement is true.

The Owner's Capital Account Increases with Each Capital Contribution Made