Which Accounts Normally Have Debit Balances

question 45

Multiple Choice

Which accounts normally have debit balances?

• A)Assets, expenses, and revenues
• B)Assets, expense, and retained earnings
• C)Assets, liabilities, and dividends
• D)Assets, expenses, and dividends

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Definitions:

Arbitrage Opportunities

Situations where a profit can be made with no risk by simultaneously buying and selling assets in different markets or forms due to price discrepancies.

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns.

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Short Positions

An investment strategy where an investor sells a security they do not own, betting that its price will decrease.