In the First Month of Operations, the Total of the Debit

question 29

Multiple Choice

In the first month of operations, the total of the debit entries to the cash account amounted to $1,200 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

• A) $800 credit balance.
• B) $1,200 debit balance.
• C) $400 debit balance.
• D) $400 credit balance.

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Definitions:

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Invested Capital

Represents the total amount of money invested into a business by its owners and creditors, used for ongoing business operations.

Net Assets

The total assets minus total liabilities of an entity, representing its net value or equity.

Productive Assets

Assets that directly contribute to the production and income generation in a business, such as machinery, buildings, and equipment.