A T-account has a $426 debit balance. This account is most likely:
A)Income Taxes Payable.
B)Common Stock.
C)Cash.
D)Magazine Sales.

Question

Quizplus · Accepted Answer

A T-account with a debit balance means that there have been more debits than credits to the account. In the case of cash, this would indicate that there have been more withdrawals or expenses paid out of the account than deposits or revenue received into the account. Therefore, the best choice would be C) Cash. The other options are unlikely to have a debit balance as Income Taxes Payable and Magazine Sales are revenue accounts and Common Stock is an equity account.

A T-Account Has a $426 Debit Balance