BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following correctly identifies normal balances of accounts?
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Assets Debit Liabilities Credit Owner’s Capital Credit Revenues Debit Expenses Credit
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Assets Debit Liabilities Credit Owner’s Capital Credit Revenues Credit Expenses Credit
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Assets Credit Liabilities Debit Owner’s Capital Debit Revenues Credit Expenses Debit
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Assets Debit Liabilities Credit Owner’s Capital Credit Revenues Credit Expenses Debit
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Explanation:
Detailed explanation-1: -The accounts that have a normal balance of debit are assets and expenses. Meanwhile, the accounts with a normal credit balance are liabilities, owner’s equity, and revenues.
Detailed explanation-2: -Liability accounts normally have credit balances.
Detailed explanation-3: -Asset accounts normally have debit balances.
Detailed explanation-4: -Accounts that normally have a debit balance include assets, expenses, and losses. Examples of these accounts are the cash, accounts receivable, prepaid expenses, fixed assets (asset) account, wages (expense) and loss on sale of assets (loss) account.
There is 1 question to complete.