Final answer:
The capital account balance reflects the net income or loss and withdrawals after closing entries. T-accounts visualize firm's accounts, showing assets balanced by liabilities and net worth. The current account balance includes international trade and investment flows.
Step-by-step explanation:
After the closing entries have been posted, the balance in the capital account indeed reflects the net income or net loss and the withdrawals for the period. The capital account is part of a company's equity section in its balance sheet, which also includes retained earnings that capture the company's cumulative earnings less dividends paid. When closing entries are made, revenues and expenses are zeroed out and their balances are transferred to income summary, which is then closed to the retained earnings part of the equity. Withdrawals or dividends are subtracted, and the result is the updated capital account balance. The T-account is a visual representation used in accounting to show the balance between a firm's assets and liabilities. It demonstrates how the company's assets are financed either by borrowing money (liabilities) or by using the owner's money (capital account/net worth). In the context of international trade, the current account balance involves the flow of goods, services, and investment income between countries, while the trade balance reflects the difference between exports and imports of goods and services.