Each Account Has a Normal Balance

question 49

Multiple Choice

Each account has a normal balance.For the following list of accounts, indicate whether the normal balance of each is a debit or a credit.
-Unearned Advertising Fees

• A)Debit
• B)Credit

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Definitions:

Monthly Cash Expenses

The total outlay of cash by a business in a month, including all operating expenses, payments, and purchases.

Cash Balance

The amount of cash held by a business at any point in time, reflecting its immediate liquidity position.

Ratio

A ratio is a quantitative relationship between two numbers, showing how many times the first number contains the second or how the two numbers compare.

Bank Reconciliation

The method of aligning the figures in a company's bookkeeping records for a cash account with the equivalent data on a bank statement.