Asked by Arjan Thouli on May 06, 2024
Verified
Which of the following accounts has a normal credit balance?
A) Accounts Receivable
B) Sales
C) Inventory
D) Delivery Expense
Normal Credit Balance
The expected or usual balance of a specific account, where liability, equity, and revenue accounts typically have credit balances.
- Comprehend the documentation of sales operations and the influence of sales reductions on fiscal reports.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
B
Explanation :
Sales accounts typically have a normal credit balance because they represent income for the business. When a company makes a sale, it credits the sales account, reflecting an increase in income.
Learning Objectives
- Comprehend the documentation of sales operations and the influence of sales reductions on fiscal reports.