PRC-1 · Chapter 3 · Question 61 of 100
A credit balance on a trial balance could logically represent which of the following combinations?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A liability, an income, or capital.
Explanation
Credit balances reflect the sources of business funds. These sources can be external obligations (liabilities), owner investments (capital), or generated revenue (income).
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