A Credit Is Not the Normal Balance for Which Account

question 87

Multiple Choice

A credit is not the normal balance for which account listed below?

• A) Common Stock account
• B) Revenue account
• C) Liability account
• D) Dividends account

Explain the various types of surveys in real estate transactions.

Distinguish between different ownership and leasing terminologies in real estate.

Understand the concept of risk management and insurance underwriting.

Know the defenses an insurer might have against paying a claim.

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Definitions:

Surety

Surety is a financial arrangement where a third party (the surety) guarantees the performance of a primary party's obligations or undertakes to fulfill the primary party's obligations if the primary party fails to do so.

Guarantor

An individual or party that guarantees to pay back a loan or fulfill another obligation if the primary party fails to do so.

Liability

The state of being legally obligated and responsible for something, typically involving restitution for harm or damages caused.

Principal Obligation

The main debt or duty that a debtor is bound to fulfill under the terms of a contract.