Which of the Following Accounts Has a Normal Debit Balance

question 21

Multiple Choice

Which of the following accounts has a normal debit balance?

• A) Dividends
• B) Common Stock
• C) Unearned Fees
• D) Retained Earnings

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Definitions:

Required Disclosure

Information that companies are legally obliged to provide to stakeholders, such as financial statements and material facts, to ensure transparency.

Revenues Recognized

The process by which revenue is recorded in the financial statements once it is earned and realizable.

Interim Periods

Shorter reporting periods within a financial year, such as quarters or half-years, used for internal or external financial reporting.

Geographic Area

A specific physical region or location defined for the purposes of economic analysis, marketing, or operational strategy.