Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which set of accounts below would have a normal debit balance?

Revenues and Equity

Liabilities and Revenues

Liabilities and Equity

Assets and Expenses

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Verified step by step guidance

Understand the concept of normal balances: In accounting, each account type has a normal balance, which is the side (debit or credit) that increases the account. Assets and expenses typically have a normal debit balance, while liabilities, equity, and revenues have a normal credit balance.

Review the account types: Assets represent resources owned by the business, and expenses represent costs incurred during operations. Both of these account types increase with debits and decrease with credits.

Analyze the options provided: Revenues and equity, liabilities and revenues, and liabilities and equity all have normal credit balances. Assets and expenses are the only account types with normal debit balances.

Relate the concept to the accounting equation: The accounting equation is Assets = Liabilities + Equity. Assets are on the debit side of the equation, while liabilities and equity are on the credit side. Expenses reduce equity, which is why they also have a normal debit balance.

Conclude the reasoning: Based on the normal balance rules and the accounting equation, the correct answer is 'Assets and Expenses,' as these account types increase with debits.