The Normal Balance of an Account

question 42

Multiple Choice

The normal balance of an account:

• A)falls on the side where decreases are recorded.
• B)falls on the side where increases are recorded.
• C)must be computed after every transaction.
• D)cannot be computed in a manual accounting system.

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Definitions:

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A definitive promise by an underwriter to purchase all of an issuer's securities at a specified price for resale to the public.

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The effectiveness with which managers utilize resources and operate businesses to achieve desired outcomes and profitability.

Security Registration

The legal process through which securities are registered with relevant authorities before being offered to the public or placed on the market.