The normal balance of Accounts Receivable is a __________because it is a(n)_________ account.
A)credit, liability
B)debit, asset
C)credit, stockholders' equity
D)debit, expense

Question

Quizplus · Accepted Answer

The normal balance of Accounts Receivable is a debit because it is an asset account. This means that when a business extends credit to a customer, it expects to receive payment in the future, and Accounts Receivable represents the amount owed by those customers. As such, it is a current asset that is expected to be converted into cash within one year, so it has a normal debit balance.

The Normal Balance of Accounts Receivable Is a __________Because It