Differentiate between capital account and current account.

The major differences between capital account and current account are as follows −

Capital Account

• These are accounts related to capital investments and expenditures of a country to another.

• It measures inflow and outflow of capital in economy.

• It evaluates country net investment position.

• Impacts foreign assets and liabilities of a country.

• Deals with source and utilisation of capital.

Current Account

• These are accounts related to trade of goods and services of a country.

• It measures inflow and outflow of goods and services in the economy.

• Merchandise trade, services, income receipts and unilateral transfers are key components.

• It evaluates trade surplus/trade deficit of a country.

• Impacts on net income and output of a country.

• Deals with receipts and disbursements in cash and non-capital items.

Mandalika

Published on 27-Jul-2020 08:14:13

• Related Questions & Answers
• Differentiate between purchase book and purchase account
• What is difference between profit and loss account and trading account?
• What is difference between profit and loss account and profit and loss appropriate account?
• Differentiate between temporary working capital and permanent working capital.
• Differentiate between Net working capital and Gross working capital.
• Differentiate between capital expenditures and revenue expenditures
• What is difference between cash account and cash book?
• Compare balance sheet and profit and loss account
• Optimal Account Balancing in C++
• How to prepare lease account?
• What is an "Account in Trust" or "Trust Account" and how is it managed?
• What is Account Balance and what is its significance?
• Difference between working capital and fixed capital.
• How to connect Azure Account using PowerShell?
• How to create a new Canva account?