Which of the Following Accounts Has a Normal Credit Balance

question 135

Multiple Choice

Which of the following accounts has a normal credit balance?

• A) Sales Returns and Allowances
• B) Delivery Expense
• C) Sales
• D) Selling Expense

---

Definitions:

Demand

The measure of a commodity or service consumers intend and are able to acquire at multiple price levels during a set time span.

Economic Profits

Profits exceeding the opportunity costs of all resources employed, including both explicit and implicit costs, signifying above-normal returns.

Long Run

An economic term referring to a period in which all factors of production and costs are variable, allowing for full adjustment to changes in the market.

Price-taking

A market condition in which individual buyers or sellers have no influence over the market price of a product, commonly seen in perfectly competitive markets.