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What type of account is used to record the business's capital in this scenario?

a) Journal entries
b) Capital account
c) Purchases account
d) Cash account

User Bosch
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1 Answer

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Final answer:

The type of account used to record the business's capital in this scenario is the Capital account.

Step-by-step explanation:

In this scenario, the type of account used to record the business's capital is b) Capital account.

The Capital account is a general ledger account that represents the owner's equity in a business. It records the initial investments made by the owner and any additional contributions or withdrawals to and from the business.

For example, if a business owner invests $10,000 of their own money to start the business, that amount would be recorded in the Capital account as a credit entry.

User Scc
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