Select the Account Below That Normally Has a Credit Balance

question 131

Multiple Choice

Select the account below that normally has a credit balance.

• A)Cash.
• B)Office Equipment.
• C)Wages Payable.
• D)Dividends.
• E)Sales Salaries Expense.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for sales on credit.

Credit Policies

Guidelines that a company follows to determine the creditworthiness of customers, terms of credit, collection procedures, and how much credit to extend.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.