Which of the Following Accounts Normally Has a Debit Balance

question 37

Multiple Choice

Which of the following accounts normally has a debit balance?

• A)Accumulated depreciation
• B)Prepaid insurance
• C)Accounts payable
• D)Common shares

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Definitions:

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, ranging from expansions (growth) to recessions (contractions).

Industrial Equipment

This category involves machinery and tools used in manufacturing processes, ranging from small tools to large machinery for heavy industries, playing a crucial role in industrial operations.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP in two successive quarters.

Automobile Industry

A sector of the economy focused on the manufacture and sales of vehicles, including cars, trucks, and motorcycles.