When Computing the Normal Balance of an Account

question 158

Multiple Choice

When computing the normal balance of an account:

• A)salaries expense should have a credit balance.
• B)accounts payable should have a credit balance.
• C)equipment should have a credit balance.
• D)notes payable should have a debit balance.

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Definitions:

Rental Car Company

A business that offers automobiles for rent to the public for short periods.

Damages

A monetary compensation awarded by a court to a person who has suffered loss or injury due to the unlawful act or negligence of another party.

Severance Pay

Compensation given to an employee upon termination of employment, often based on length of service.

Plant Closure

The process of permanently shutting down the operations of a factory or industrial site, often due to economic pressures or business restructuring.