For Each of the Following Accounts, Indicate Whether Its Normal

question 23

Multiple Choice

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.
-Accounts Receivable

• A)Credit side
• B)Debit side

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Definitions:

Debt-Equity Ratio

The debt-equity ratio shows the comparative amount of shareholder equity and debt financing a company uses to support its assets.

Fully Depreciated

A state where a fixed asset has reached the end of its useful life and its book value is reduced to scrap value.

Profit Margin

A measure of a company's profitability, calculated by dividing net income by total revenues. It shows how much profit each dollar of sales generates.

Net Income

The total profit or earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.