Identify the Accounts That Would Normally Have Balances in the Credit

question 9

Multiple Choice

Identify the accounts that would normally have balances in the credit column of a business's trial balance.

• A)Liabilities and expenses.
• B)Assets and revenues.
• C)Revenues and expenses.
• D)Revenues and liabilities.
• E)Dividends and liabilities.

---

Definitions:

Asset Account

An account recorded on the balance sheet that represents items of value owned by a company, such as cash, inventory, buildings, and equipment.

Straight-line Method

A method of calculating depreciation by uniformly distributing the cost of an asset minus its salvage value over its useful life.

Gain on Sale

The financial benefit that occurs when the selling price of an asset exceeds its original purchase price.

Loss on Sale

Loss on Sale occurs when the selling price of an asset is less than its carrying amount on the books, resulting in a financial loss.