The Following Normal Account Balances Were Found on the General

question 95

Multiple Choice

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } \hline \text { Revenue } \$ 800 & \text { Cash } \$ 500 \\\hline \text { Expenses } \$ 400 & \text { Accounts Receivable } \$ 350 \\\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \\\hline\end{array}$$
After closing entries are posted,what is the balance in the Cash account?

• A)$800
• B)$0
• C)$300
• D)$500.

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Definitions:

Account Payable

The liability created by a purchase on account.

Solvency Analysis

An assessment of a company's ability to meet its long-term financial obligations.

Noncurrent Liabilities

Financial obligations of a company that are not due to be settled within one year, including long-term loans, bonds payable, and long-term lease obligations.

Current

In finance, "current" typically refers to assets and liabilities that are expected to be realized or settled within one year from the reporting date.