Question

Firms must also keep an accurate record of the number of shares owned by each stockholder. Consequently, each stock account is what kind of account?

a) Asset account
b) Liability account
c) Equity account
d) Revenue account

Answer 1

The type of account used to keep track of the number of shares owned by stockholders is an equity account.

Step-by-step explanation:

Firms must keep an accurate record of the number of shares owned by each stockholder. This type of account is called equity account. The equity account represents the ownership interest of stockholders in the company. It is a sub-category of the owner's equity section on the balance sheet.

Stock accounts are used to keep track of the number of shares owned by each stockholder. These accounts are part of the equity section of the balance sheet, which represents the ownership interest in a company. Stock account is a sub-category of the equity account.

In summary, the stock account is considered an equity account in the financial records of a company.