Which of the Following Accounts Does NOT Normally Have a Credit

question 67

Multiple Choice

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

• A) accounts payable
• B) retained profits
• C) tax payable
• D) prepaid expenses.

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Definitions:

Subscription Price

The price at which existing shareholders can purchase new shares of stock in a company, usually at a discount to the current market price.

Net Present Value

The contrast between the present value of money received and the present value of money spent over a duration.

Fixed Assets

Long-term tangible assets that are used in the operating activities of a business and are not expected to be consumed or converted into cash in the short term.

Equity Shares

Shares of stock that represent ownership in a company, entitling the shareholder to a portion of the corporation's profits and assets.