Select the Account Below That Normally Has a Credit Balance

question 131

Multiple Choice

Select the account below that normally has a credit balance.

• A)Cash.
• B)Office Equipment.
• C)Wages Payable.
• D)Dividends.
• E)Sales Salaries Expense.

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Definitions:

Cash Inflows

The total amount of money received by a company from its various business activities, including sales, financing, and investments, during a specific period.

Net Income

What remains of a company’s revenue after all expenses, including taxes and costs, have been removed.

Balance Sheet Equation

An accounting formula representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Retained Earnings

The portion of net income not distributed as dividends to shareholders, but retained by the company to reinvest in its business or to pay debt.