Multiple Choice
In journal entries using the standard rules for debits and credits, a debit is used to record which of the following?
20
views
2. Transaction Analysis
Journal Entries: Debits and Credits
Multiple Choice
Which type of accounts generally has a normal debit balance under double-entry accounting?
A
Liabilities and equity
B
Assets and expenses
C
Equity and revenues
D
Liabilities and revenues
Verified step by step guidance1
Understand the concept of 'normal balance' in double-entry accounting: it refers to the side (debit or credit) where increases to an account are recorded.
Recall that asset accounts typically increase with debits, so they have a normal debit balance.
Recognize that expense accounts also increase with debits, meaning they too have a normal debit balance.
Contrast this with liability, equity, and revenue accounts, which generally increase with credits and thus have normal credit balances.
Conclude that the types of accounts with a normal debit balance are assets and expenses.
Related Videos
Related Practice
