Consider the Following List of Accounts: Cash Retained Earnings

question 4

Multiple Choice

Consider the following list of accounts: Cash Retained Earnings
Service Revenue Utilities Expense
Salaries Expense Accounts Receivable
Accounts Payable Common Stock
Equipment Dividends
How many of these accounts have a normal debit balance?

• A)Four.
• B)Five.
• C)Six.
• D)Seven.

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Definitions:

Ending Merchandise Inventory

The final value of goods available for sale at the end of an accounting period, before any new inventory has been added.

Specific Identification Method

An inventory costing method where specific costs are attached to individual units of inventory, typically used for unique or high-value items.

Low-Unit Cost Items

Products or goods that have a relatively low cost per unit, making them inexpensive to purchase in large quantities.

Inventory Valuation

The method used to calculate the cost of goods sold and the ending inventory, factoring in purchases and any changes in costs or quantities.