Question

Which of the following accounts normally have a credit balance?

• A. Unearned revenue; prepaid rent; sales revenue.
• B. Sales revenue; expenses; retained earnings.
• C. Sales revenue; cash; unearned revenue.
• D. Accounts payable; retained earnings; sales revenue.

Answer 1

The correct option is D

Accounts payable; retained earnings; sales revenue.

Answer d. Accounts payable; retained earnings; sales revenue

Explanation: In accounting, incomes or revenues are credits since incomes cause proprietors’ value or investors’ value to increase. The asset accounts are relied upon to have debit balances, while the liabilities or obligation and proprietor’s value accounts are relied upon to have credit adjusts.