Of the Following Accounts, the One That Normally Has a Debit

question 55

Multiple Choice

Of the following accounts, the one that normally has a debit balance is

• A) accounts payable
• B) accounts receivable
• C) Ted Neal, capital
• D) sales revenue
• E) unearned revenue

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Definitions:

Sole Proprietorship

A type of enterprise that is owned and run by one individual and in which there is no legal distinction between the owner and the business entity.

Company Formation

The legal process involved in starting a new corporation or business entity, including registration and obtaining necessary licenses and permits.

Limited Liability

The condition by which shareholders' responsibility for the company's debts and liabilities is limited to the amount they invested.

Ownership Transfer

The process of transferring the legal rights and titles of an asset or property from one entity or individual to another.