Author Question: Which of the following is true regarding normal balances of accounts? a. All accounts have a normal ... (Read 114 times)

V@ndy87 · **on:** Jul 5, 2018

Which of the following is true regarding normal balances of accounts?
a. All accounts have a normal debit balance.
b. The normal balance of all accounts will have either a positive or negative balance.
c. Accounts that have a normal debit balance will only have debit entries, never credit entries.
d. The normal balance is on the increase side of the account.

Question 2

A nongovernment, not-for-profit organization received 5,000,000 of unconditional pledges during 2013 that had not been collected by year end. In its 2013 statement of activities, the organization should recognize

A. No revenues, but should report receivables and deferred revenues in its balance sheet.
B. Unrestricted revenues of 5,000,000.
C. Temporarily restricted revenues of 5,000,000.
D. Permanently restricted revenues of 5,000,000.