Which of the Following Would Appear in the Credit Column

question 4

Multiple Choice

Which of the following would appear in the credit column of an adjusted trial balance?

• A)Income tax payable.
• B)Cost of goods sold.
• C)Prepaid insurance.
• D)Interest receivable.

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Definitions:

Ordinary Annuities

Ordinary annuities are a series of equal payments made at the end of consecutive periods over a fixed length of time.

Perpetuity

A financial term referring to a security or form of investment that pays an infinite series of cash flows with no end date.

Endowment Fund

A financial asset, in the form of donations, made to non-profit organizations that uses the generated income for a specific purpose.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounted cash flow analysis to assess the profitability of an investment.