Asset Accounts Normally Have Debit Balances and Revenue Accounts Normally

question 92

True/False

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders as determined by the company's board of directors.

Operating Activities

The primary revenue-generating activities of a business, such as sales and service delivery, reflected in its cash flow.

Investing Activities

Components of cash flows relating to the acquisition and disposition of long-term assets and other investments not considered cash equivalents.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, such as issuing debt or equity securities.