Question-1: Capital account is increased by:Select one:a.Debiting the accountb.Crediting the accountc.Not doing anythingd.Debiting or crediting any other account
Question
Question-1: Capital account is increased by:Select one:a.Debiting the accountb.Crediting the accountc.Not doing anythingd.Debiting or crediting any other account
Solution
The answer is: b. Crediting the account
Here's why:
In accounting, the capital account is a general ledger account that is used to record the owners' contributed capital and retained earnings—the cumulative amount of a company's earnings since it was formed, minus the cumulative dividends paid to the shareholders.
When you increase the capital account, you are adding to the owner's equity. This is done by crediting the account. In contrast, you would debit the account to decrease it. Therefore, the capital account is increased by crediting the account.
Similar Questions
Which of the following accounts is increased with a debit entry?Question 20Answera.Revenueb.Accounts Payablec.Accounts Receivabled.Share Capital
Accounts receivable is increased by:Select one:a.Debiting the accountb.Crediting the accountc.Not doing anythingd.Debiting or crediting any other account
An increase in capital account is recorded by a credit entry.
Which one of the following statements is true?i. A debit entry in the cash book will increase an overdraft in the accountsii. A debit entry in the cash book will increase a bank balance in the accountsiii. A credit entry in the cash book will increase a bank balance in the accountsiv. A credit entry in the cash book will not influence a bank balance in the accountsGroup of answer choicesA. ivB. iiiC. iD. ii
In financial statements, Sales on account will cause an increase in ______. (Select all that apply.)Multiple select question.Accounts Payable on the balance sheetAccounts Receivable on the balance sheetAllowance for Doubtful Accounts on the income statementSales Revenue on the income statement
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.