93.9k views
4 votes
A credit is not the normal balance for which account listed below?

1) Assets
2) Liabilities
3) Equity
4) Expenses

User JSmyth
by
8.0k points

1 Answer

3 votes

Final answer:

A credit is not the normal balance for an expense account; assets typically have a debit balance, while liabilities and equity usually have a credit balance.

Step-by-step explanation:

A credit is not the normal balance for an expense account. In accounting, the normal balances of accounts are critical for understanding financial statements. Assets, like cash and equipment, normally have a debit balance. Liabilities, such as loans or accounts payable, and Equity, which represents owners' claims on the business, typically have a credit balance.

Expenses represent the costs of doing business and normally have a debit balance as well. When an expense is incurred, it is debited to reflect an increase in the expense, and a corresponding credit is made to cash or accounts payable, depending on whether the expense was paid in cash or on credit.

User Merrick
by
7.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.