Which of the Following Describes the Classification and Normal Balance

question 86

Multiple Choice

Which of the following describes the classification and normal balance of the retained earnings account?

• A)Asset,debit
• B)Stockholders' equity,credit
• C)Liability,credit
• D)Stockholders' equity,debit

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Definitions:

Voucher

A document or record that verifies a transaction and authorizes the payment or receipt of funds.

Journal

A record where all financial transactions are initially entered in chronological order.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Balance Per Books

The ending balance of an account as recorded in the financial records of a company or individual.