Which of the Following Accounts Has a Normal Credit Balance

question 78

Multiple Choice

Which of the following accounts has a normal credit balance?

• A) Sales Returns and Allowances
• B) Sales
• C) Merchandise Inventory
• D) Delivery Expense

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Definitions:

Market

A place or mechanism where buyers and sellers can trade goods, services, securities, or other items of value.

Securities

Financial instruments that represent ownership positions in publicly-traded corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Returns on Stock Investments

The gain or loss made on stock investments, typically expressed as a percentage of the investment's initial cost.

Inflationary Pressures

Situations or factors that lead to an overall increase in prices, reducing purchasing power in an economy.