Multiple choice

Which of the following accounts will have a credit balance?

  1. Sale returns

  2. Bills receivable

  3. Carriage inwards

  4. Outstanding wages

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Outstanding wages (unpaid wages owed to workers) is a liability that naturally has a CREDIT balance. Sale returns has a debit balance (reduces sales), Bills receivable has a debit balance (asset), and Carriage inwards has a debit balance (expense). Liabilities and incomes typically have credit balances.