Which of the Following Accounts Normally Has a Credit Balance

question 10

Multiple Choice

Which of the following accounts normally has a credit balance?

• A) Sales Discounts
• B) Sales Returns and Allowances
• C) Purchases Returns and Allowances
• D) Purchases
• E) Accounts Receivable

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Definitions:

Net Investment

Gross investment minus depreciation.

Gross Private Domestic Investment

The aggregate amount of investment in physical assets, such as buildings and machinery, by the private sector within a country.

Military Goods

Products and services specifically designed, manufactured, and supplied for use by armed forces.

Intermediate Products

These are goods that are used as inputs in the production of other goods and services, not intended for final consumption.