A debit balance in which of the following accounts would indicate a likely error?
A) Salaries expense
B) Accounts receivable
C) Share capital
D) Equipment

Question

Quizplus · Accepted Answer

Share capital typically has a credit balance because it represents the amount of money shareholders have contributed to the company. A debit balance in the share capital account would suggest an error, as it would imply a negative contribution from shareholders, which is not a standard accounting practice.

A Debit Balance in Which of the Following Accounts Would