Which of the Following Accounts Normally Has a Debit Balance

question 37

Multiple Choice

Which of the following accounts normally has a debit balance?

• A)Accumulated depreciation
• B)Prepaid insurance
• C)Accounts payable
• D)Common shares

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected cost, indicating how effectively a company is managing its raw material costs.

Accounts Payable

The amount a company owes to its suppliers or creditors for goods or services received that have not yet been paid for.

Work in Process

Products that are in the middle of the production process but are not yet finished.

Material Price Variance

The difference between the actual cost of materials and the standard cost multiplied by the quantity purchased.