The Normal Balance of a Revenue Account Is a ________

question 117

Multiple Choice

The normal balance of a revenue account is a ________ because revenues increase ________.

• A) debit; assets
• B) debit; dividends
• C) credit; liabilities
• D) credit; shareholders' equity

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Definitions:

Quick Assets

Assets that can be quickly converted into cash, usually including cash, marketable securities, and accounts receivable.

Temporary Investments

Assets that are not intended to be held for long periods but are bought with the intention of being converted back into cash within a short timeframe.

Accounts Receivable

The amount customers are required to pay a company for goods or services that have been provided but not yet compensated for.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to the business for day-to-day operations.