Final answer:
Liabilities, equity, and revenue accounts normally have a credit balance. Assets and expenses typically have a debit balance, and on a balance sheet, the total assets should equal total liabilities plus equity.
Step-by-step explanation:
The classifications that have a normal balance on the credit side are liabilities, equity, and revenue accounts. In accounting, these categories traditionally carry a credit balance. When we refer to liabilities, we include things such as accounts payable and loans. Equity refers to the owner's equity, including stock or retained earnings. Lastly, revenue comprises all income received from sales, services, or interest.
In contrast, asset and expense accounts typically have a normal debit balance. On a balance sheet that uses the T-account format, assets are listed on the left (debit) side, while liabilities and equity are on the right (credit) side, striking a balance between total assets and total liabilities plus equity, both of which should equal each other to represent a balanced financial position. This is essential for preparing accurate financial statements and fundamental to the double-entry bookkeeping system.