The normal balance of a capital account
A) can be either a debit or a credit balance.
B) is a debit balance.
C) is a credit balance.
D) is called a footing.

Question

Quizplus · Accepted Answer

The capital account is a component of the owner's equity section of the balance sheet, which represents the total value of the assets after deducting total liabilities. It includes investments made in the business, such as money or assets, and retained earnings. Since the capital account represents the owner's equity, it's a credit balance, and any decrease in the account is recorded as a debit.

The Normal Balance of a Capital Account