The Classification and Normal Balance of the Accounts Receivable Account

question 27

Multiple Choice

The classification and normal balance of the accounts receivable account is:

• A) an asset with a credit balance
• B) a liability with a debit balance
• C) an asset with a debit balance
• D) a revenue with a debit balance

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Definitions:

Competition Act

A law designed to prevent anti-competitive practices in the marketplace.

Divestiture Order

A directive issued by a court or regulatory authority requiring a company to sell or divest assets or operations to promote competition or reduce monopoly power.

Competition Act

Legislation aimed at preventing anti-competitive practices in the marketplace, by regulating and promoting fair competition.

Trade Practices

Refers to the methods, operations, and conduct of a business or trade, including advertising, marketing, and selling of goods and services, often subject to regulation to ensure fairness and competition.