All of the Following Accounts Have Normal Credit Balances Except

question 13

Multiple Choice

All of the following accounts have normal credit balances except

• A)Accounts Payable
• B)Common Stock Capital Stock)
• C)Investments
• D)Service Revenue

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the ledger for the next period.

Financial Statements

Consolidated documents such as the balance sheet, income statement, and cash flow statement that summarize a company’s financial performance.

Adjusting Entries

journal entries made in an accounting system to update accounts for transactions that have not yet been recorded by the end of a period.

Accounting Equation

The fundamental equation of accounting stating that Assets = Liabilities + Shareholder's Equity, underpinning the double-entry bookkeeping system.