A Debit Balance in Which of the Following Accounts Would

question 65

Multiple Choice

A debit balance in which of the following accounts would indicate a likely error?

• A) Salaries expense
• B) Accounts payable
• C) Inventory
• D) Equipment

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Definitions:

Bankruptcy Risk

The likelihood that a company will be unable to meet its financial obligations and be forced into bankruptcy, causing potential losses for investors.

Bond Indenture

The contract between the issuer and the bondholder.

Coupon Rate

The per year interest yield of a bond, expressed as a portion of its principal value in percentage.

Par Value

The face value of a bond or stock, representing the amount that will be paid back at maturity.