An Account Balance Is

question 158

Multiple Choice

An account balance is:

• A) The total of the credit side of the account.
• B) The total of the debit side of the account.
• C) The difference between the total debits and total credits for an account including the beginning balance.
• D) Assets = liabilities + equity.
• E) Always a credit.

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Definitions:

Treasury Stock

Securities initially sold to the public and later repurchased by the company that issued them, diminishing the number of shares circulating in the market.

Par Value

The face value of a bond or stock, as stated on the certificate, which is the amount the issuer agrees to pay at maturity (for bonds) or an arbitrary value assigned for shares.

Journal Entry

A record in accounting that represents a single transaction and its impact on the financial statements, made up of debits and credits.

Purchase Price

The amount of money paid or agreed to be paid by the buyer to acquire a good or service from the seller.