Each Account Has a Normal Balance

question 83

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.
-Wages and Salaries Expense

• A)Debit
• B)Credit

---

Definitions:

Operating Activities

Activities that constitute the primary or main activities of a business, including sales, services, and day-to-day operations.

Merchandise Inventory

The total value of a retailer's or wholesaler's goods on hand at the end of an accounting period, available for sale to customers.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.