Vidyalelo
Commerce · Q94

Accounting

Graduate and Post Graduate · Commerce · question 94

Q94

Which of the following statements is incorrect regarding capital account?

A.
Debit increases the capital account balance
Answer
B.
Credit increases the capital account balance
C.
Fresh capital increases the capital account balance
D.
Net income increases the capital account balance

Answer: Option A

Solution

Answer: Option A
Solution:
Debit increases the capital account balance statements is incorrect regarding capital account. It decreases the capital account balance.