Which of the following statements is incorrect regarding capital account?
ACredit increases the capital account balance
BFresh capital increases the capital account balance
CDebit increases the capital account balance
DNet income increases the capital account balance
Correct answer
C. Debit increases the capital account balance
Explanation
Debit increases the capital account balance is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.