Indicate Whether Each of the Following Accounts Normally Possesses a Debit

question 24

Essay

Indicate whether each of the following accounts normally possesses a debit (DR)or a credit (CR)balance.
$\begin{array}{ll}\text { 1. Wage expense } & \text { 9. Merchandise Inventory } \\\text { 2. Prepaid rent } & \text { 10. Salary expense } \\\text { 3. Cost of goods sold } & \text { 11. Equipment } \\\text { 4. Cash } & \text { 12. Accounts receivable } \\\text { 5. Sales } & \text { 13. Accumulated depreciation } \\\text { 6. Paid-in-capital } & \text { 14. Notes payable } \\\text { 7. Depreciation expense } & \text { 15. Utilities expense }\\\text { 8.Accounts payable}\end{array}$

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Definitions:

Security Interest

A legal claim or lien on collateral that gives a lender the right to take property if a borrower defaults on their obligations.

Perfection

In legal and financial contexts, refinement is the process of securing an interest in collateral against third parties, often through public registration.

Security Agreement

A legal document that provides a lender a security interest in specified assets of the borrower as collateral for a loan.

Filing

The process of submitting documents to a specified authority or organization for official review or record-keeping.