Which of the Following Accounts Are Expected to Have a Debit

question 15

Multiple Choice

Which of the following accounts are expected to have a debit normal balance? 1.Merchandise Inventory
2) Rent Expense
3) Paid-in Capital
4) Accumulated Depreciation
5) Sales
6) Prepaid Rent
7) Accounts Payable

• A)Merchandise Inventory,Rent Expense,Prepaid Rent
• B)Merchandise Inventory,Paid-in Capital,Sales,Prepaid Rent
• C)Paid-in Capital,Accumulated Depreciation,Sales,Accounts Payable
• D)Rent Expense,Accumulated Depreciation,Accounts Payable
• E)Merchandise Inventory,Paid-in Capital,Accumulated Depreciation,Accounts Payable

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Definitions:

Efforts-Expended Method

A accounting technique used to recognize revenue proportionally to the work or effort that has been completed on a project, commonly applied in long-term contracts.

Output Measures

Metrics or indicators used to quantify the level of products or services produced by a company or an industry.

Deposit Method

A method of accounting used for transactions where the receipt or payment of money precedes the delivery of goods or services, recognizing the transaction when the delivery occurs.

Revenue Recognition

The guideline in accounting that determines the precise situations where revenue should be recognized or reported.