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.

Question

Quizplus · Accepted Answer

A Capital account is used to record the owner's investments in the business, as well as any permanent changes in equity. Withdrawals, on the other hand, would be reductions in equity when the owner takes money out of the business. Asset accounts represent resources owned by the business, while expense and revenue accounts are used to record the costs and earnings of the business operations.

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