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Which of the following refers to the balance an account is always supposed to have?

Normal balance

Debits

Credits

Double-entry system

User Flavia
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1 Answer

3 votes

Answer:

Normal balance

Step-by-step explanation:

Accounts are expected to have either debit or credit balance, depending on their classification. The accounting equation of Assets is equal to equity plus liabilities is the basis for account classification. Assets accounts are on one side, while accounts relating to equity and liabilities are on the other.

Accounts have normal balances if the balances at the end of a period are as expected. Assets accounts are expected to have debit balances, while equity and liabilities accounts should have credit balances.

User Jano
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