The Normal Account Balances for Owner's Capital and Withdrawals Are

question 52

Multiple Choice

The normal account balances for owner's Capital and Withdrawals are

• A)credit and debit,respectively.
• B)debits.
• C)credits.
• D)debit and credit,respectively.

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Definitions:

Perpetual Inventory Method

A system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Accounts Payable-Emma Co.

The amount of money Emma Co. owes to its suppliers or creditors for items or services purchased on credit.

Debit Balance

A financial situation where the total debits exceed the total credits in an account, resulting in a positive account balance.

Inventory

Assets held for sale in the ordinary course of business, as well as materials and supplies used in producing goods available for sale.