Which of the Following Accounts Normally Has a Credit Balance

question 34

Multiple Choice

Which of the following accounts normally has a credit balance?

• A)Accumulated amortization
• B)Accounts receivable
• C)Dividends declared
• D)Rent expense

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Definitions:

Allocated General Overhead

The portion of indirect costs assigned to a particular production process, product, or department.

Variable Costs

Expenditures that directly correspond with production levels or the amount of sales.

Fixed Costs

Expenses that remain constant regardless of the level of production or business activity.

Suspension of Operations

The temporary halt of business activities or operations, which can be due to a variety of reasons, including economic downturns or emergencies.