Question

What is the difference between the Capital Account and the Reserve Account in the BOP?

a.

The Reserve Account includes reserve assets, while the Capital Account does not.

b.

The Capital Account includes reserve assets, while the Reserve Account does not.

c.

There is no difference; both accounts are identical.

d.

The Reserve Account records only unilateral transfers.

Posted under IC 89 Management Accounting

Answer: (a).The Reserve Account includes reserve assets, while the Capital Account does not. Explanation:The Reserve Account is similar to the Capital Account, but it includes "reserve assets" as a distinguishing feature.

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Q. What is the difference between the Capital Account and the Reserve Account in the BOP?
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