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?

Liabilities and Equity

Liabilities and Revenues

Assets and Expenses

Revenues and Equity

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Verified step by step guidance

Understand the concept of normal balances: In accounting, accounts are classified as having either a normal debit balance or a normal credit balance. Assets and expenses typically have a normal debit balance, while liabilities, equity, and revenues usually have a normal credit balance.

Review the classification of accounts: Assets include items like cash, accounts receivable, and inventory. Expenses include costs incurred by the business, such as rent, utilities, and salaries. Both of these account types increase with debits and decrease with credits.

Analyze the options provided: Liabilities and equity, liabilities and revenues, and revenues and equity all have normal credit balances. Assets and expenses are the only account types listed that have a normal debit balance.

Relate the normal balance to the accounting equation: The accounting equation is Assets = Liabilities + Equity. Assets increase with debits, and expenses (which reduce equity) also increase with debits. This aligns with the normal debit balance for these accounts.

Conclude the reasoning: Based on the classifications and the accounting equation, the correct set of accounts with a normal debit balance is Assets and Expenses.