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What is the appropriate classification of customers accounts with credit balances in a balance sheet?
Wiki User
∙ 14y ago
If a customers account has a "credit" balance, this means the company owes that customer rather than the customer owing the company.
Customer accounts tend to have a debit balance, meaning the customer owes the company that amount. It is rare when a company owes a customer, if this does happen, the account becomes a liability instead of an asset because of the fact that now the company owes money rather than is "owed" money.
Wiki User
∙ 14y ago
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How do you verify balances on the trial balance?
verify the balances of all ledger accounts
Why do expense accounts have debit balances?
20333
What is the purpose of closing entries?
The purpose of closing entries is to transfer the balances of temporary accounts to permanent accounts. These entries are used via the adjusted trial balances.
Why may a control account carries both debit and credit balances?
A control account summarizes a set of subsidiary accounts. For example, Accounts receivable may have a control account, representing total Accounts receivable, and also may have a set of subsidiary accounts, representing the amount of Accounts receivable owed by each customer/debtor. The total of all subsidiary accounts must equal the balance of the control account. Control accounts will have debit or credit balances depending on the nature of those accounts. Control accounts for assets, such as Accounts receivable or Fixed assets, will have native debit balances. Control accounts for liabilities, such as Accounts payable, will have native credit balances.
On a trial balance what Are the accounts payable?
debit balances
What are the needs of retail banking?
Customers and Balances. The primary way that retail banks earn money is based on the balances that are in their customers' account. The higher the account balances the better. By getting more accounts, they will bring in more money and the best way to get more accounts is to get more customers.
What services are included in Barclay online banking?
Barclay's online banking allows customers access to their accounts 24 hours a day. They can check balances, transfer funds, and even open new accounts online.
How do you verify balances on the trial balance?
verify the balances of all ledger accounts
Why do expense accounts have debit balances?
20333
What report lists accounts and their balances in which the total debit balances should equal the total credit balances?
Trial Balance
What is the purpose of closing entries?
The purpose of closing entries is to transfer the balances of temporary accounts to permanent accounts. These entries are used via the adjusted trial balances.
What online features does Citicorp offer their customers?
Citicorp offers its customers online features such as online banking which allow for 24 hour service seven days a week. It is a convenient way to transfer balances between accounts and make bill payments.
Why may a control account carries both debit and credit balances?
A control account summarizes a set of subsidiary accounts. For example, Accounts receivable may have a control account, representing total Accounts receivable, and also may have a set of subsidiary accounts, representing the amount of Accounts receivable owed by each customer/debtor. The total of all subsidiary accounts must equal the balance of the control account. Control accounts will have debit or credit balances depending on the nature of those accounts. Control accounts for assets, such as Accounts receivable or Fixed assets, will have native debit balances. Control accounts for liabilities, such as Accounts payable, will have native credit balances.
WHAT is normal balance of accounts payable?
credit balances
What do balances do?
Accounts that are subject to bank service charges.
On a trial balance what Are the accounts payable?
debit balances
What are accounts payable on a trial balance?
debit balances
