Given the Following List of Accounts with Normal Balances, What

question 25

Multiple Choice

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits? $$\begin{array}{l}\begin{array} {| l | l | } \hline \text {Cash}&\$1000 \\\hline \text {Equipment}&500\\\hline \text {Accounts Payable}&250\\\hline \text {Capital}&1000\\\hline \text {Service Fees }&1000\\\hline \text {Salaries Expense}&750\\\hline\end{array}\end{array}$$

• A) $3,250 debit, $3,250 credit
• B) $1,125 debit, $1,125 credit
• C) $4,500 debit, $4,500 credit
• D) $2,250 debit, $2,250 credit

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Definitions:

Regulation

Rules or directives made and maintained by an authority to manage or govern behavior within its jurisdiction, typically aiming at ensuring fairness, safety, or standards.

Subrogation

The substitution of parties whereby the party substituted acquires the rights at law of the other party, usually by way of contractual arrangement.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.

Salvage

The right of the insurer to the property where the insured is compensated for the loss.