Which of the Following Correctly Identifies Normal Balances of Accounts

question 121

Multiple Choice

Which of the following correctly identifies normal balances of accounts?

• A)\[\begin{array} { l l }
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Stockholders' Equity } & \text { Credit } \\
• \text { Revenues } & \text { Debit } \\
• \text { Expenses } & \text { Credit }
• \end{array}\]
• B)\[\begin{array} { l l }
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Stockholders' Equity } & \text { Credit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Credit }
• \end{array}\]
• C)\[\begin{array} { l l }
• \text { Assets } & \text { Credit } \\
• \text { Liabilities } & \text { Debit } \\
• \text { Stockholders' Equity } & \text { Debit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Debit }
• \end{array}\]
• D)\[\begin{array} { l l }
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Stockholders' Equity } & \text { Credit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Debit }
• \end{array}\]

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Definitions:

Cost Equation

A mathematical formula that relates cost to its determinants, such as output level, activity level, or other cost drivers.

Delivery Costs

Expenses related to transporting goods from a seller to the purchaser, including shipping, handling, and packaging fees.

Regression Output

This is the result of regression analysis, typically showing the relationship between independent variables and the dependent variable.

Cargos

Goods or commodities transported for commercial gain, typically by ship, aircraft, or other vehicles.