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A credit is not the normal balance for which account listed below?

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

User JSmyth
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1 Answer

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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
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