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 of the following is an example of an account that typically has a normal debit balance?

Cash

Accounts Payable

Service Revenue

Common Stock

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Verified step by step guidance

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

Analyze the account types provided in the question: Cash is an asset account, Accounts Payable is a liability account, Service Revenue is a revenue account, and Common Stock is an equity account.

Recall the rule for normal balances: Asset accounts (like Cash) have a normal debit balance because they increase with debits and decrease with credits. Liability, revenue, and equity accounts (like Accounts Payable, Service Revenue, and Common Stock) have normal credit balances because they increase with credits and decrease with debits.

Determine which account matches the criteria for a normal debit balance: Based on the rules, Cash is the account that typically has a normal debit balance.

Conclude the reasoning: Cash is the correct answer because it is an asset account, and assets have normal debit balances according to accounting principles.