An Awareness of the Normal Balances of Accounts Would Help

question 13

Multiple Choice

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

• A) A debit balance in the dividends account
• B) A credit balance in an expense account
• C) A credit balance in a liabilities account
• D) A credit balance in a revenue account

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Definitions:

Veto Power

The authority to reject or prohibit proposals or laws, often held by a president, governor, or other leader.

Separation of Powers

The division of a state's government into branches, each with separate, independent powers and responsibilities, to prevent abuse of power and to provide a system of checks and balances.

Checks and Balances

A system in government where different branches are empowered to prevent actions by other branches and are induced to share power, maintaining a balance.

Civil Liberties

Individual rights protected by law from unjust governmental or other interference.