Which of the Following Correctly Identifies Normal Balances of Accounts

question 56

Short Answer

Which of the following correctly identifies normal balances of accounts? A)
$\begin{array}{ll}\text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Owner's Capital } & \text { Credit } \\\text { Revenues } & \text { Debit } \\\text { Expenses } & \text { Credit }\end{array}$


B)
$\begin{array}{ll}\text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Owner's Capital } & \text { Credit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Credit }\end{array}$

C)
$\begin{array}{ll}\text { Assets } & \text { Credit } \\\text { Liabilities } & \text { Debit } \\\text { Owner's Capital } & \text { Debit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Debit }\end{array}$

D)
$\begin{array}{ll}\text { Assets } & \text { Debit } \\\text { Liabilities } & \text { Credit } \\\text { Owner's Capital } & \text { Credit } \\\text { Revenues } & \text { Credit } \\\text { Expenses } & \text { Debit }\end{array}$

---

Definitions:

Input

Resources such as labor, materials, and capital used in the production of goods and services.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Marginal Product

Refers to the additional output that is produced by adding one more unit of a specific input, assuming all other inputs are held constant.