Question

Identify the accounts that would normally have balances in the debit column of a business's trial balance. a. assets and expenses. b. assets and revenues. c. revenues and expenses. d. liabilities and expenses. e. liabilities and withdrawals.

Answer 1

The correct answer is assets and expenses, as these accounts typically have debit balances on a business's trial balance. Assets include resources like cash and inventory, while expenses include costs incurred in earning revenues.

Step-by-step explanation:

The accounts that would normally have balances in the debit column of a business's trial balance are assets and expenses. This is because the debit side of the T-account represents the assets of the firm, such as cash, inventory, and accounts receivable, as well as any expenses incurred in earning revenue. On the other hand, the credit column typically includes liabilities, owner’s equity, and revenues. According to accounting principles, the trial balance report should show that the total debits equal the total credits, which means the accounting equation (Assets = Liabilities + Owner’s Equity) is in balance.