Which of the Following Correctly Identifies Normal Balances of Accounts

question 98

Short Answer

Which of the following correctly identifies normal balances of accounts? a. $\begin{array}{ll}\text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Common Stock } & \text { Credit } \\\text { Revenues } & \text { Debit } \\\text { Expenses } & \text { Credit }\end{array}$

b. $\begin{array}{ll}\text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Common Stock } & \text { Credit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Credit }\end{array}$

c. $\begin{array}{ll}\text { Assets } & \text { Credit } \\\text { Liabilities } & \text { Debit } \\\text { Common Stock } & \text { Debit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Debit }\end{array}$

d. $\begin{array}{ll}\text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Common Stock } & \text { Credit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Debit }\end{array}$

Calculate total disbursements based on purchases, sales forecasts, and financial policies.

Determine collections for specific months using the accounts receivable period and sales data.

Understand how to calculate inventory purchases required for future sales based on cost of goods sold percentages and inventory policies.

Analyze cash flow by calculating cash collections and disbursements based on sales, policies, and operational cycles.

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