Question

Indicate whether the normal balance of each account is a debit or a credit?

1) Debit
2) Credit

Answer 1

The normal balance of an account is determined by whether increases in the account are recorded as a debit or a credit. Debit refers to the left side of an account, while credit refers to the right side. Assets and expenses have a debit normal balance, while liabilities, equity, and revenues have a credit normal balance.

Step-by-step explanation:

The normal balance of an account is determined by whether increases in the account are recorded as a debit or a credit. In accounting, the terms debit and credit are used to indicate the direction in which entries are made in the accounts.

Debit refers to the left side of an account, while credit refers to the right side.

The normal balance of an account is the side that increases the account. For example, assets and expenses have a debit normal balance, while liabilities, equity, and revenues have a credit normal balance.