Final answer:
The account with a balance where credits normally exceed debits is liabilities, which represent what a company owes. Revenue and equity also typically have credit balances. On a bank's balance sheet, liabilities are balanced against assets and the bank's net worth or capital.
Step-by-step explanation:
The account with a balance where credits normally exceed debits is liabilities. In accounting, liabilities represent what a company owes to others, such as loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses. In a T-account, the right side stands for credits which increase liability accounts, whereas debits, on the left side, decrease them. Additionally, accounts such as revenue and equity also normally have credit balances.
When analyzing a bank's balance sheet, we see assets like cash and loans on one side, and liabilities plus net worth on the other. The assets, which can include items like U.S. treasury bonds and reserves, are balanced against liabilities, consisting of customer deposits and other debts, and the bank's equity, or net worth. A bank's net worth is also referred to as bank capital, and it represents total assets minus total liabilities.