Question

Consider the following list of accounts: Accounts Payable Cash Prepaid Rent Common Stock Salaries Payable Equipment Supplies Rent Expense How many of these accounts have a normal credit balance?

Answer 1

Answer:

Four (4)

Explanation:

The normal balances of the listed accounts are as follows.

Accounts Payable: credit balance

Cash: debit balance

Prepaid Rent: debit balance

Common Stock: credit balance

Salaries Payable: credit balance

Equipment: debit balance

Supplies: debit balance

Rent Expense: debit balance

Four of the eight accounts have credit balances.