All of the Following Accounts Have Normal Credit Balances Except

question 89

Multiple Choice

All of the following accounts have normal credit balances except:

• A) Accounts payable.
• B) Unearned revenue.
• C) Common stock.
• D) Inventory.

---

Definitions:

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by where marginal cost equals marginal revenue.

Revenue

The total income generated by a business from its normal business activities, such as sales of goods or services, before any expenses are deducted.

Cost

The value of everything that is consumed to produce a good or service, including materials, labor, and other expenses.

Competitive Firm

A business that operates in a market where it must compete with other firms for the same customers or resources.