Which of the following accounts has a normal credit balance?
A)Accounts Receivable
B)Equipment
C)Utilities Expense
D)Deferred Revenue

Question

Quizplus · Accepted Answer

Recall the accounting equation (Assets = Liabilities + Stockholders' Equity)and that debits increase accounts on the left-side of the equation and credits increase accounts on the right-side of the equation.Liability accounts (Deferred Revenue)have normal credit balances.Asset accounts (Accounts Receivable and Equipment)and expense accounts (Utilities Expense)have normal debit balances.

Which of the Following Accounts Has a Normal Credit Balance