An account with a normal debit balance indicates that the account is a liability account.

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An account with a normal debit balance indicates that the account is an asset account, and not a liability account. Examples of asset accounts with normal debit balances include cash, accounts receivable, and inventory. Conversely, liability accounts such as accounts payable, accrued expenses, and notes payable have normal credit balances.

An Account with a Normal Debit Balance Indicates That the Account