Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 23

For the following questions, circle the best response.

Normal account balances are as follows:

a. Cash, Accounts Receivable, and Service Revenues are debits.

b. Interest Expense, Wages Payable, and Retained Earnings are credits.

c. Merchandise Inventory, Cost of Goods Sold, and Equipment are debits.

d. Accumulated Depreciation, Cash, and Merchandise Inventory are debits.

e. None of the above.