Which of the Following Statements Is Incorrect

question 90

Multiple Choice

Which of the following statements is incorrect?

• A) The normal balance of the accounts receivable account is a debit.
• B) The normal balance of the owner's withdrawals account is a debit.
• C) The normal balance of an unearned revenues account is a credit.
• D) The normal balance of an expense account is a credit.
• E) The abnormal balance of a revenue account is a debit.

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Definitions:

Blue-money Income

Informal term possibly referring to income earned in a foreign or stronger currency, or income derived from questionable or illegal activities.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which each unit is identical to every other unit.

Coconuts

Tropical fruits or nuts known for their water, milk, oil, and meat, and often used as examples in economic models.

Fish

Aquatic vertebrates that are typically covered with scales and equipped with fins for swimming.