Which of the Following Correctly Identifies Normal Balances of Accounts

question 80

Multiple Choice

Which of the following correctly identifies normal balances of accounts?

• A)
• \(\begin{array}{ll}
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Equity } & \text { Credit } \\
• \text { Revenues } & \text { Debit } \\
• \text { Expenses } & \text { Credit }
• \end{array}\)
• B)
• \(\begin{array}{ll}
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Equity } & \text { Credit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Credit }
• \end{array}\)
• C)
• \(\begin{array}{ll}
• \text { Assets } & \text { Credit } \\
• \text { Liabilities } & \text { Debit } \\
• \text { Equity } & \text { Debit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Debit }
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Equity } & \text { Credit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Debit }
• \end{array}\)

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Definitions:

Listed Price

The official price of a commodity, security, or asset that is publicly quoted on an exchange.

Futures Contract

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a specified asset at a predetermined future date and price.

Futures Contracts

Agreements to buy or sell an asset at a future date at a price agreed upon today.

Actual Delivery

In finance, refers to the physical delivery of a financial instrument or commodity as opposed to a settlement made in cash or another financial arrangement.