Question

____ capital account always show a credit balance

Answer 1

Answer:

Fixed  capital account always show a credit balance

Answer 2

The fixed capital account always shows a credit balance since the fixed capital presents a physical asset which helps in the production of the products rather than involving in the production process.

Explanation:

• The fixed capital amount is one which helps an owner to produce new products.
• Apart from this, when the profit rates as a result of the selling of the products increases within the industry, the overall credit balance also increases that gets added in the fixed capital account.

To know more:

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