Identify the Statement Below That Is Incorrect

question 107

Multiple Choice

Identify the statement below that is incorrect.

• A)The normal balance of accounts receivable is a debit.
• B)The normal balance of owner's withdrawals is a debit.
• C)The normal balance of unearned revenues is a credit.
• D)The normal balance of an expense account is a credit.
• E)The normal balance of the owner's capital account is a credit.

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Definitions:

Work in Process Inventory

Inventory that includes all unfinished goods being manufactured at a given time.

Merchandise Inventory

Goods and products that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.

Factory Overhead Cost

All indirect costs associated with manufacturing, such as maintenance and cleaning of equipment, which cannot be directly traced back to the production of specific goods.