Which account normally has a debit balance?
Understand the Problem
The question is asking about accounting principles, specifically which type of account typically maintains a debit balance. This relates to the classification of accounts in accounting, such as assets, liabilities, and equity.
Answer
assets, dividends, and expenses
The final answer is assets, dividends, and expenses.
Answer for screen readers
The final answer is assets, dividends, and expenses.
More Information
In accounting, asset, dividend, and expense accounts typically hold debit balances because they represent funds that are spent or invested by the business. These accounts are increased by debits and decreased by credits.
Tips
A common mistake is to confuse revenues with expenses because both involve business transactions. Remember that revenues increase owner's equity and thus have a credit balance, while expenses decrease it.
Sources
- Which accounts normally have debit balances? | AccountingCoach - accountingcoach.com
- Normal Debit and Credit Balances for the Accounts | AccountingCoach - accountingcoach.com
- Normal Balance of Accounts: Definition and Examples - Brixx - brixx.com
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