Which of the Following Accounts Has a Normal Credit Balance

question 21

Multiple Choice

Which of the following accounts has a normal credit balance?

• A) Sales Returns and Allowances
• B) Sales Discounts
• C) Sales Revenue
• D) Selling Expense

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Definitions:

Manufacturing Overhead

All the manufacturing costs except raw material and direct labor.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation, and salaries for production supervisors.

Direct Labor

The wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.

Raw Materials

Basic materials used in the manufacturing process to produce finished goods, not yet processed or used in production.