Which of the Following Accounts Would Normally NOT Have a Credit

question 47

Multiple Choice

Which of the following accounts would normally NOT have a credit balance?

• A) Accounts Payable
• B) Cost of Goods Sold
• C) Sales Revenue
• D) Retained Earnings

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Definitions:

Exercised

In financial terms, refers to the act of utilizing the rights provided by a derivative contract, such as executing a buy or sell order under the terms of an option contract.

American Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a certain time period.

Fixed Price

A pricing strategy where the cost of goods or services is set and does not fluctuate with changes in the market or inventory costs.

Given Date

A specific date mentioned or defined within a particular context or document.