Liability accounts normally have debit balances.

Name: Liability accounts normally have debit balances.
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Question

Quizplus · Accepted Answer

Liability accounts normally have credit balances, not debit balances. This is because liabilities represent obligations or debts owed by a company to other parties, and as the company fulfills those obligations or pays off those debts, the amount owed decreases, which is reflected in the credit balance of the liability account.

Liability Accounts Normally Have Debit Balances