Revenues, Accounts Receivable, and Common Stock have normal balances of:
A)credit, debit, and credit, respectively.
B)debit, debit, and credit, respectively.
C)credit, credit, and credit, respectively.
D)debit, debit, and debit, respectively.

Question

Quizplus · Accepted Answer

- Revenues are typically generated by providing goods or services to customers, and are therefore recorded as a credit.
- Accounts Receivable represents the amount that customers owe to the company for goods or services provided on credit, and is therefore recorded as a debit.
- Common Stock represents the amount of equity that shareholders have invested in the company, and is therefore recorded as a credit.

Revenues, Accounts Receivable, and Common Stock Have Normal Balances Of