Question

State which balance, debit, or credit is normally held by the following accounts:_______.
A. Cash Dividends.
B. Notes payable.
C. Un-earned revenue.
D. Cost of goods sold.
E. Prepaid rent.
F. Accounts receivable.
G. Capital stock.

Answer 1

Answer:

Explanation:

We know that

The debit sections report the assets and expenditures side while sales, stockholder equity, and the liability side are reported in the credit section.

So, the categorization is shown below:

A. Cash Dividends = Debit account as it is a temporary account which is to be debited at the time of declaration

B. Notes payable. = Credit side as it is a liabilities account

C. Un-earned revenue = Credit side as it is a liabilities account

D. Cost of goods sold = Debit account as it an expense account

E. Prepaid rent. = Debit account as it is a current asset  

F. Accounts receivable.  = Debit account as it is a current asset

G. Capital stock. = Credit account as it has come under the stockholder equity