Which of the Following Items Generally Has a Credit Balance

question 28

Multiple Choice

Which of the following items generally has a credit balance in the income statement columns of the worksheet?

• A) Purchase Returns and Allowances
• B) Purchases
• C) Accumulated Depreciation
• D) Accounts Payable

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Definitions:

Profits

Net income that remains after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Critical Thinking

The ability to objectively analyze and evaluate an issue or situation to form a judgement, by questioning assumptions and identifying biases.

Social Responsibility

Social Responsibility involves businesses and individuals acting in ways that benefit society at large, beyond their own interests or profits.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.