Question

Which of the following statement is true?
(A) Fixed capital account will always have a credit balance
(B) Current account can have a positive or a negative balance
(C) Fluctuating capital account can have a positive or a negative balance
(D) All of the aboveno​

Answer 1

Answer:

ans : d

because capitals in fixed capital account are always fixed so that they can not be negative

in current account capitals are not fixed so that some times capitals may be negative and it is also same for fluctuating capitals because capitals keeps on fluctuating

I think u understand the concept

Answer 2

Answer:

The correct option is (d) All of the above.

Therefore all the given statements are true.

Explanation:

Reasons why all the statements are true :

(A)

• Since fixed capital is a physical asset that aids in the production of the products rather than being involved in the production process, the fixed capital account always displays a credit balance.

• A fixed capital sum is one that enables a business owner to generate new goods.

• In addition, the overall credit balance that is contributed to the fixed capital account increases as the profit rates from the sale of the items within the industry rise.

(B)

• A positive current account indicates that the country is a net exporter of goods and services, whereas a negative current account indicates that the country is a net importer of goods and services.
• Whether positive or negative, a country's current account balance will be equal to but the opposite of its capital account balance.

(C)

• All entries for interest on capital or withdrawals, commissions, partner salaries, etc., and share of profit are credited to the capital account.
• Under this system, the capital account could have a positive or negative balance.

#SPJ3