Question

Which one of the following account groups normally has a credit​ balance? A. equity and assets B. assets and liabilities C. assets and expenses D. liabilities and revenues

Answer 1

In accounting, liabilities and revenues normally have a credit balance.

Step-by-step explanation:

In accounting, the normal balance of an account refers to whether the account has a debit or credit balance. The correct answer to your question is D. Liabilities and revenues normally have a credit balance. Liabilities are amounts owed by the company to its creditors, such as loans payable and accounts payable. Revenues are the income earned by the company, such as sales revenue and service revenue. Both liabilities and revenues increase with credits and decrease with debits.