The Normal Balance of Notes Payable Is a ________ Because

question 101

Multiple Choice

The normal balance of notes payable is a ________ because it is a(n) ________ account.

• A)debit; expense
• B)credit; revenue
• C)debit; asset
• D)credit; liability

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Definitions:

Net Cash Flow

The amount of cash generated or lost by a company in a given period, considering cash inflows and outflows from operating, investing, and financing activities.

Accounts Receivable

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Inventories

Tangible property held for sale in the ordinary course of business, in the process of production for such sale, or to be currently consumed in the production of goods or services.

Accounts Payable

Money owed by a company to its creditors for products and services that have been received but not yet paid for.