Indicate Whether Each Account Below Has a Normal Debit or a Normal

question 170

Essay

Indicate whether each account below has a normal debit or a normal credit balance.
a. Automobiles
b. Accounts Payable
h. Unearned Revenue
c. Owner's Capital
i. Land
d. Prepaid Rent
j. Interest Payable
e. Advertising Expense
f. Service Revenue
g. Owner's Withdrawals
h. Unearned Revenue
i. Land
j. Interest Payable
k. Notes Receivable

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Definitions:

Economic Profits

The surplus remaining after total costs are deducted from total revenue, factoring in both explicit and opportunity costs.

Normal Rate

Refers to the standard, expected rate in financial or economic contexts, often used as a benchmark.

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.

Total Variable Costs

The sum of all costs that vary with the level of output or production.