Which of the Following Is True Regarding Normal Balances of Accounts

question 201

Multiple Choice

Which of the following is true regarding normal balances of accounts?

• A) All accounts have a normal debit balance.
• B) The normal balance of all accounts will have either a positive or negative balance.
• C) Accounts that have a normal debit balance will only have debit entries, never credit entries.
• D) The normal balance is on the increase side of the account.

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Definitions:

Historical Demand

Past data regarding the consumption of products or services, used to predict future demand patterns and guide inventory and production planning.

July

The seventh month of the year in the Gregorian calendar, typically associated with mid-summer in the northern hemisphere.

Simple Exponential Smoothing

A time series forecasting method for univariate data that can be used to forecast data without any clear trend or seasonal patterns.

Observable Trend

A pattern, change, or movement in data that can be detected and assessed through analysis over a certain period.