Select the Account Below That Normally Has a Credit Balance

question 131

Multiple Choice

Select the account below that normally has a credit balance.

• A)Cash.
• B)Office Equipment.
• C)Wages Payable.
• D)Dividends.
• E)Sales Salaries Expense.

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Definitions:

Debit Memorandum

A document issued by a buyer to a seller indicating the amount debited to the seller's account due to returned goods or discrepancies in invoice amounts.

Purchase Amount

The total price paid for goods or services, including taxes and any additional charges.

Financial Statement

A Financial Statement is a formal record of the financial activities and position of a business, person, or other entity, including income statements, balance sheets, and statements of cash flows.

Normal Balance

The usual balance of an account in the accounting system, where asset and expense accounts typically have a debit balance, and liability, equity, and revenue accounts have a credit balance.