[amp_mcq option1=”Capital” option2=”A liability” option3=”Asset” option4=”None of the above” correct=”option3″]
The correct answer is: C. Asset
A credit balance in a bank account represents an asset because it represents money that the account holder owns. An asset is anything that has value and can be used to produce income or satisfy a liability. In this case, the money in the bank account can be used to purchase goods and services, or it can be invested to earn interest.
A capital account is a record of the owner’s equity in a business. Equity is the difference between the assets of a business and its liabilities. A liability is a debt that a business owes.
None of the above options are correct.