The Classification and Normal Balance of the Retained Earnings Account

question 56

Multiple Choice

The classification and normal balance of the retained earnings account is

• A)asset, debit.
• B)shareholders' equity, credit.
• C)revenues, credit.
• D)liability, debit.

Understand the sequence in which financial statements should be prepared.

Identify and classify different types of accounts (assets, liabilities, equity, revenues, and expenses) and understand their roles in financial accounting.

Understand the concept and significance of unearned fees as a current liability.

Recognize what fixed assets will not have related accumulated depreciation.