Which of the Following Groups of Accounts Contains Only Those

question 147

Multiple Choice

Which of the following groups of accounts contains only those that normally have credit balances?

• A)Accounts Payable,Service Revenue,and Retained Earnings
• B)Cash,Equipment,and Common Stock
• C)Notes Payable,Salaries and Wages Payable,and Rent Expense
• D)Cash,Accounts Receivable,and Retained Earnings

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Definitions:

Notes Receivable

Written promises for amounts to be received in the future, typically with interest, classified as assets on a balance sheet.

Calculating Interest

The process of determining the amount of interest to be added to the principal sum of a loan or deposit.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including both the principal and any final interest payments.

Issued Note

A financial instrument representing a promise to pay a specified amount of money at a future date.