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

---

Definitions:

Estimated Cost

An approximation of the cost to produce a product, start a project, or execute a plan, often used in budgeting and planning.

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold, calculated as sales minus the cost of goods sold.

Estimated Gross Profit Rate

A projected figure that calculates the percentage of gross profit to sales, used for analyzing a company's financial health.

Inventory Turnover

A metric that indicates how many times a company’s inventory is sold and replaced over a specific period.