Which of the Following Accounts Has a Normal Debit Balance

question 160

Multiple Choice

Which of the following accounts has a normal debit balance?

• A) Art Fees Earned
• B) Notes Payable
• C) Prepaid Insurance
• D) Unearned Art Fees

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Definitions:

Conversion Feature

An option within certain bonds or preferred stocks that allows them to be converted into a predetermined amount of the issuer's common stock.

Dividend Yield

The annual dividend payments to shareholders expressed as a percentage of the stock's current price.

Yield-To-Maturity

The total return anticipated on a bond if it is held until it matures, including all payments from interest and principal, calculated as an annual rate.

Zero-Coupon Bond

A bond that does not pay periodic interest payments and is sold at a discount from its face value. The bond's profit comes from the difference between its purchase price and its face value at maturity.