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

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

A credit is not the normal balance for which of the following accounts?

Accounts Payable

Accounts Receivable

Common Stock

Revenue

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Verified step by step guidance

Understand the concept of normal balance: In accounting, the normal balance of an account refers to the side (debit or credit) where increases to the account are recorded. For example, asset accounts typically have a normal debit balance, while liability and equity accounts usually have a normal credit balance.

Analyze the accounts listed in the problem: Accounts Payable, Accounts Receivable, Common Stock, and Revenue. Determine the type of each account (asset, liability, equity, or revenue) and its normal balance.

Accounts Payable is a liability account, and its normal balance is a credit because liabilities increase on the credit side.

Accounts Receivable is an asset account, and its normal balance is a debit because assets increase on the debit side. This makes it the correct answer since a credit is not its normal balance.

Common Stock is an equity account, and its normal balance is a credit because equity increases on the credit side. Revenue is a revenue account, and its normal balance is also a credit because revenues increase on the credit side.