Which One of the Following Account Groups Normally Has a Credit

question 208

Multiple Choice

Which one of the following account groups normally has a credit balance?

• A) assets and liabilities
• B) equity and assets
• C) liabilities and revenues
• D) assets and expenses

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Definitions:

Allocation Method

A procedure used in accounting or budgeting to distribute costs or revenues among various accounts or departments based on predetermined criteria.

ABC Perspective

An ABC Perspective generally refers to viewing activities based on Activity-Based Costing, focusing on managing activities as the route to optimizing costs and improving business operations.

Costs Incurred

Expenses that a company has recognized, reflecting economic value that has been consumed or used up.

Financial Transactions

Activities involving the exchange of money between two or more parties.