Which One of the Following Account Groups Normally Has a Credit

question 208

Multiple Choice

Which one of the following account groups normally has a credit balance?

• A) assets and liabilities
• B) equity and assets
• C) liabilities and revenues
• D) assets and expenses

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Definitions:

Sales Taxes Payable

The liability account used to record the sales tax collected from customers by a seller, which is due to be paid to the government.

Cash Sales

Transactions in which goods or services are paid for and received at the time of the sale, using cash or equivalent.

Sales Taxes

Taxes imposed by governments on the sale of goods and services.

Journal Entry

A record in accounting that notes transactions and changes in financial statements.