The Normal Balance of a Liability Account Is a and the Normal

question 125

Multiple Choice

The normal balance of a liability account is a and the normal balance of the common shares account is a .

• A) debit; debit
• B) credit; credit
• C) credit; debit
• D) debit; credit

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Definitions:

Negatively Affects

Leads to adverse consequences or reduces the quality or performance of something.

Air Traffic

The movement of aircraft within the air space controlled by various authorities, including commercial, private, and military flights.

Perfectly Competitive

A market structure characterized by many sellers offering identical products, leading to price determination through supply and demand forces without individual control.

Externalities

Economic side effects or consequences that affect an uninvolved third party; can be either positive or negative.