Identify the Statement Below That Is Incorrect

question 170

Multiple Choice

Identify the statement below that is incorrect.

• A)The normal balance of accounts receivable is a debit.
• B)The normal balance of dividends is a debit.
• C)The normal balance of unearned revenues is a credit.
• D)The normal balance of an expense account is a credit.
• E)The normal balance of the common stock account is a credit.

---

Definitions:

Bond Interest

The periodic payment made to bondholders, typically a fixed rate of interest paid on the bond's face value.

Tax Purposes

The consideration or treatment of transactions, events, or financial situations in relation to calculating tax liabilities.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Earnings

Income generated from a company's business activities over a certain period, often reported as net income.