The Normal Balance of an Expense Is a ________ While

question 42

Multiple Choice

The normal balance of an expense is a ________ while the normal balance of an asset is a ________.

• A)debit; credit
• B)debit; debit
• C)credit; credit
• D)credit; debit

---

Definitions:

Rights Offering

A form of raising capital where a company offers existing shareholders the right to purchase additional shares at a discounted price before offering them to the public.

Price-earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation metric comparing a company's current share price to its per-share earnings, helping investors assess the value of a stock.

Value Of A Right

The theoretical financial value of a right given to existing shareholders to purchase additional shares at a discount before a new issuance.

Rights Offering

A method by which a company offers new shares to its existing shareholders in proportion to their current shareholding, typically at a discount to the current market price.