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:

Grapevine

Informal communication channels within an organization, through which information and rumors circulate beyond official communication paths.

Cultural Context

The environment or situation that surrounds and influences the way in which individuals communicate and interpret behavior.

Economic Context

The circumstances or environment in which economic activities occur, which can include factors like market conditions, economic policies, and the overall state of the economy.

Cluster

A collection of similar objects or individuals that are located or happen in close proximity.