The capital stock accounts (capital stock par,stated value or paid in capital)reflect

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The capital stock accounts reflect the ownership interest of individuals who own stock in the company. This ownership interest is represented by the amount of money that individuals have paid to the company for their shares, which is recorded as capital stock par, stated value or paid-in capital. Option A is incorrect because individuals who loaned money to the company are represented in the notes payable and other liability accounts. Option C is incorrect because loaning money does not represent ownership interest. Option D is incorrect because owning stock does not represent an ownership obligation; it represents an ownership interest.

The Capital Stock Accounts (Capital Stock Par,stated Value or Paid