Which of the Following Groups of Accounts Have a Normal

question 146

Multiple Choice

Which of the following groups of accounts have a normal debit balance?

• A) revenues, liabilities, and stockholders' equity
• B) stockholders' equity and assets
• C) liabilities and stockholders' equity
• D) assets and expenses

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including balance sheet, income statement, and cash flow statement.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within their jurisdiction.

Units-Of-Output

A depreciation method where the expense is based on the number of units produced or the machine hours used during the period.

Match of Expenses

The accounting principle of recognizing expenses in the same period as the revenues they helped to generate.