The normal balance of an account:
A)is always a debit.
B)is always a credit.
C)is the side that increases the account balance.
D)can be determined from the journal.

Question

Quizplus · Accepted Answer

The normal balance of an account refers to the side of the account on which increases will be recorded. For example, the normal balance of an asset account is a debit, meaning that increases in the account will be recorded on the debit side. Similarly, the normal balance of a liability account is a credit, meaning that increases in the account will be recorded on the credit side. The normal balance can be determined from the type of account it is (e.g. asset, liability, equity, revenue, expense), and is not always a debit or credit. The normal balance is important when analyzing financial statements and preparing journal entries.

The Normal Balance of an Account