Which Account Has a Normal Debit Balance

question 159

Multiple Choice

Which account has a normal debit balance?

• A)Salaries payable
• B)Common Stock
• C)Advertising Expense
• D)Service revenue

---

Definitions:

Cost Of Goods Sold

The immediate costs linked to the manufacture of products a business sells, involving material and labor costs.

Net Income

The earnings a company retains after removing all expenses and taxes from its revenue.

Periodic Inventory Method

An accounting method where inventory value and cost of goods sold are determined at the end of an accounting period.

Beginning Inventory

The price of items up for sale at the onset of a fiscal period.