Which of the Following Statements Is True of the Owner's

question 7

Multiple Choice

Which of the following statements is true of the Owner's Capital account?

• A)It is an equity account that has a normal credit balance.
• B)It is a liability account that has a normal credit balance.
• C)It is a liability account that has a normal debit balance.
• D)It is an equity account that has a normal debit balance.

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Definitions:

Decentralization

The distribution of decision-making authority from central to local units or levels in an organization.

Separate Sales Forces

This refers to the practice of having distinct teams within a business that focus on selling different products, services, or targeting different markets.

Income From Operations

The earnings generated from a company's regular business activities, excluding any investment income or expenses unrelated to its core operations.

Service Department Expenses

Costs associated with the support departments of a company that do not directly contribute to the production of goods but are necessary for operations.