Question

Identify the Normal Balance (Debit or Credit) for Each of the Following Accounts.

A. Assets: Debit, Liabilities: Credit
B. Assets: Credit, Liabilities: Debit
C. Both Debit
D. Both Credit

Answer 1

The normal balance of assets is debit, while the normal balance of liabilities is credit.

Step-by-step explanation:

The normal balance of assets is debit and the normal balance of liabilities is credit. This means that when recording transactions, increases in assets are recorded as debits, while decreases in assets are recorded as credits. On the other hand, increases in liabilities are recorded as credits, while decreases in liabilities are recorded as debits.