which of the following might produce an account balance that
which of the following might produce an account balance that is not normal?
a) underpayment of an account payable
b) overpayment of an account receivable by a customer
c) underaccrual of interest expense
d) none of the above
Solution
Answer is b)
Over payment of an account receivable by a customer will change the account receivable balance to credit balance from debit balance (which is not normal). A credit balance in account receivable is a advance and need to be treated that way. Rest of options will result in normal balance.
