State Whether the Normal Balance of Each of the Following

question 167

Essay

State whether the normal balance of each of the following accounts is a debit or credit.
$$\begin{array} { | l | l | } \hline \text { Account } & \text { Normal Balance } \\\hline \text { Common Stock } & \\\hline \text { Accounts Receivable } & \\\hline \text { Salaries Expense } & \\\hline \text { Unearned Revenue } & \\\hline\end{array}$$

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Definitions:

Net Margin

A financial metric that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Sales

The process of selling goods or services to customers in exchange for money or other compensation.

Net Margin

A profitability metric calculated as net income divided by revenue, expressed as a percentage, indicating how much of each dollar in revenues is translated into profits.

Sales

The activity or business of selling goods or services to customers.