Which of the Following Groups of Accounts Have a Normal

question 78

Multiple Choice

Which of the following groups of accounts have a normal debit balance?

• A) revenues, liabilities, and capital
• B) capital and assets
• C) liabilities and capital
• D) assets and expenses

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Definitions:

Inventory Management

The supervisory process focusing on ordering, storing, using, and selling a company's inventory.

Short-Term Debt Financing

Borrowing of funds for a period of one year or less to meet short-term financial needs of a company.

Credit Availability

The ease with which individuals or businesses can obtain loans or credit.

Cash Discounts

The amount by which a seller is willing to reduce the invoice price in order to be paid immediately, rather than in the future. A cash discount might be 2/10, net 30, which means a 2% discount if the bill is paid within 10 days, otherwise the entire amount is due within 30 days.