Multiple choice

The current account of a partner __________________.

  1. will always show a debit balance

  2. will never show a debit balance

  3. will show a credit balance

  4. will never show a credit balance

  5. may have a debit or a credit balance
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Current account can show a debit or a credit balance. Debit balance is shown on the assets side and credit balance is shown on the liabilities side of the balance sheet.

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