Asked by Cayla Hamilton on Jun 19, 2024
Verified
The normal balance of a capital account is a debit.
Capital Account
An account on a company's balance sheet that represents the owners' stake or equity in the company.
Debit Balance
A financial situation where the total sum of debits in an account exceeds the total sum of credits, indicating assets or expenses.
- Identify the distinctions between asset, liability, and equity accounts and their customary balances.
Verified Answer
NA
Nabaalaa AhmedJun 21, 2024
Final Answer :
False
Explanation :
The normal balance of a capital account is a credit. This is because the capital account shows the owner's equity in the business, which is a liability to the business. Liabilities generally have a credit balance, so the capital account also has a credit balance.
Learning Objectives
- Identify the distinctions between asset, liability, and equity accounts and their customary balances.