The Type of Account and Normal Balance of Petty Cash

question 170

Multiple Choice

The type of account and normal balance of Petty Cash is a (n)

• A) revenue, credit
• B) asset, debit
• C) liability, credit
• D) expense, debit

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Definitions:

Goods

Tangible products that are manufactured, bought, or sold, fulfilling the needs or desires of consumers.

Choices

The act of selecting between two or more possibilities or options in a decision-making process.

Rationing

Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated to those willing to give up the most “other things” in order to get it.

Scarcity

The essential economic dilemma revolves around the vastness of human aspirations contrasted with the limitations of available resources.