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:

Securities Accounting Standards (SASs)

A set of guidelines and rules for the accounting and reporting of transactions involving securities.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data.

Interim Financial Statements

Periodic financial statements prepared during the fiscal year, providing an update on a company's financial position and performance between annual reports.

Voting Stock

Shares of a corporation's stock that entitle the shareholder to vote on company matters, such as electing directors.