Question

Capital account consists of long term capital transactions only

Answer 1

The capital account, in international economics, is the part of the balance of payments which records all transactions made between entities in one country with entities in the rest of the world. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments such as foreign aid and remittances. The balance of payments is composed of a capital account and a current account — though a narrower definition breaks down the capital account into a financial account and a capital account. In accounting, the capital account shows the net worth of a business at a specific point in time – and is otherwise known as shareholders' equity.


I hope help u