Which of the Following Correctly Identifies Normal Balances of Accounts

question 1

Multiple Choice

Which of the following correctly identifies normal balances of accounts?

• A)
• \(\begin{array}{llcc}
• \text { Assets } &\text { Debit} \\
• \text { Liabilities} &\text { Credit}\\
• \text { Common Stock } &\text {Credit} \\
• \text { Revenues } &\text { Debit}\\
• \text { Expenses } &\text { Credit}\\
• \end{array}\)
• B)
• . \(\begin{array}{llcc}
• \text { Assets } &\text { Debit} \\
• \text { Liabilities} &\text { Credit}\\
• \text { Common Stock } &\text {Credit} \\
• \text { Revenues } &\text {Credit}\\
• \text { Expenses } &\text { Credit}\\
• \end{array}\)
• C)
• \(\begin{array}{llcc}
• \text { Assets } &\text { Credit} \\
• \text { Liabilities} &\text { Debit}\\
• \text { Common Stock } &\text {Debit} \\
• \text { Revenues } &\text {Credit}\\
• \text { Expenses } &\text { Debit}\\
• \end{array}\)
• D)
• \(\begin{array}{llcc}
• \text { Assets } &\text {Debit} \\
• \text { Liabilities} &\text { Credit }\\
• \text { Common Stock } &\text {Credit} \\
• \text { Revenues } &\text {Credit}\\
• \text { Expenses } &\text { Debit}\\
• \end{array}\)

Identify the sequence and significance of steps in the accounting cycle.

Understand the role of adjusted trial balances in preparing financial statements.

Differentiate between permanent and temporary accounts and their treatment at the end of the accounting period.

Distinguish between the roles of different types of trial balances in the accounting process.

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Definitions:

Long-term Memory

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A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Filing Cabinet

A piece of office furniture used for storing documents, files, and other materials in an organized manner.

Long-term Memory

A type of storage in the brain capable of holding information for an extended period of time, from hours to a lifetime.