Each Account Has a Normal Balance

question 122

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 Payable

• A)Debit
• B)Credit

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Definitions:

Long-Term Bond

A bond that matures in more than ten years, offering the bondholder a specified interest rate over a long period.

Investments In Associates

Investments in other companies where the investor has significant influence but does not control or jointly control the company.

Current Assets

These are assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Debt Securities

Financial instruments representing money borrowed that must be repaid, including bonds, notes, and bills.