Final answer:
An error in recording that can be spotted by an awareness of normal balances of accounts is a credit balance in an expense account, which typically should have a debit balance.
Step-by-step explanation:
An awareness of the normal balances of accounts helps in spotting errors in recording. Looking at the options given:
- A) A debit balance in the Dividends account is correct, as dividends normally have a debit balance.
- B) A credit balance in an expense account is incorrect, since expense accounts typically have debit balances.
- C) A credit balance in a liabilities account is correct, as liabilities typically have a credit balance.
- D) A credit balance in a revenue account is also correct, as revenues normally have credit balances.
Therefore, the error in recording indicated by an abnormal balance would be option B, a credit balance in an expense account.
The normal balance for Dividends is a debit in accounting.