Which of the following accounts has a normal credit balance?

Multiple Choice

• Cash

• Accounts Payable

• Accounts Receivable

• T. Stark, Drawing

Land is a long-term asset that is subject to depreciation.

true or false

If adjusting entries are not made for prepaid expenses, assets on the balance sheet:

Multiple Choice

• will not be affected.

• will be overstated.

• may be either overstated or understated.

• will be understated.