Identify the statement below that is incorrect.
A) The normal balance of owner's withdrawals is a debit.
B) The normal balance of the owner's capital account is a credit.
C) The normal balance of an expense account is a credit.
D) The normal balance of accounts receivable is a debit.
E) The normal balance of unearned revenues is a credit.

Question

Quizplus · Accepted Answer

The normal balance of an expense account is a debit, not a credit. This is because expenses represent decreases in assets or increases in liabilities, both of which are typically recorded with debits.

Identify the Statement Below That Is Incorrect