Accounting for IGCSE & O level - Final Statements (Section 7 - No. 38)
Which of the following statements is true regarding the capital account?
It shows the owner's original investment.
It is only affected by sales transactions.
It reflects the profit or loss of the business.
It tracks the owner's drawings.
Explicaţie
The capital account tracks the owner's original investment, profit/loss, and drawings.