The Normal Balance of a Liability Account Is a Debit

question 61

True/False

The normal balance of a liability account is a debit.

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Definitions:

Sales Forecast

A sales forecast is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance.

Financial Forecasting

The process of estimating or predicting how a business will perform in the future through its financial statements.

FA/Sales Ratio

The Fixed Asset to Sales Ratio compares a company's total amount of fixed assets to its sales revenue, indicating how efficiently the company uses its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits for a specific period.