Which of the Following Accounts Normally Have a Credit Balance

question 115

Multiple Choice

Which of the following accounts normally have a credit balance?

• A)Unearned revenue;Prepaid rent;Sales revenue.
• B)Sales revenue;Expenses;Retained earnings.
• C)Sales revenue;Cash;Unearned revenue.
• D)Accounts payable;Retained earnings;Sales revenue.

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Definitions:

Affirmative Covenants

Provisions in a loan agreement requiring the borrower to undertake certain actions or meet specific conditions.

Negative Covenants

Restrictions in loan agreements that prohibit certain actions by the borrower, intended to protect the interests of the lender.

Debt Covenants

Conditions imposed on borrowers by lenders as part of a loan agreement to protect the lender’s interests by restricting the borrower’s actions.

Earnings Target

A benchmark for financial performance set by a company, reflecting a goal for net income or earnings per share over a specific period.