a. Sales Revenue
b. Salary Expense
c. Accounts Receivable
d. Dividends
2007-09-18 10:21:31 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
a. Sales Revenue is definitely the answer, but be careful of d. Dividends. They didn't state whether it's dividend income or dividend as a distribution. Why should you have to presume? They should have made it clearer for you. For every dividend that is paid, somebody will receive it right? To that somebody, it's dividend income, and this is always a credit balance.
2007-09-18 16:40:13 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Sales is a revenue account. Revenue carries a normal credit balance. Therefore, a credit will increase a credit.
(a) is the answer.
Dividends are contra to retained earnings and CARRY A DEBIT balance. A credit is used in dividends to roll them into retained earnings which reduces the retained earnings.
This works the same as drawing and capital.
2007-09-18 12:38:39 · answer #2 · answered by fivestring46 4 · 0⤊ 0⤋
a
d
but there is a prob in d
dividends receivables: dont increase on Cr
and
dividends payable: increase on Cr
2007-09-18 10:33:31 · answer #3 · answered by Papilio 3 · 0⤊ 0⤋