Question

Which of the following have normal debit balances? (select all that apply.)

a.common stock notes
b.payable supplies
c.cash accounts
d.payable equipment

Answer 1

In accounting, common stock, supplies, and cash have a normal debit balance, while payable equipment has a normal credit balance.

Step-by-step explanation:

In accounting, a normal debit balance refers to the side of an account that increases the account balance. The following accounts have normal debit balances:

• Common stock: Represents the equity invested by shareholders in a corporation.
• Supplies: Represents the cost of supplies purchased and used by a business.
• Cash: Represents the amount of money a business has on hand or in bank accounts.

On the other hand, payable equipment has a normal credit balance. It represents an amount owed by a business for the purchase of equipment.