Which of the Following Accounts Does Not Have a Normal

question 13

Multiple Choice

Which of the following accounts does not have a normal credit balance?

• A) Inventory
• B) Accounts Payable
• C) Common Shares
• D) Retained Earnings

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Definitions:

Automobile Insurance

A type of insurance policy that provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise.

Premium

An amount paid periodically to the insurer by the insured for covering his risk or the cost above the nominal value of something.

Temporary Insurance

Short-term coverage designed to provide protection for a limited period, often while awaiting the implementation of permanent insurance.

Binder Agreement

A temporary insurance contract providing coverage until a formal policy is issued.