Asset and expense accounts normally have
A) credit balances.
B) large balances.
C) debit balances.
D) negative balances.

Question

Quizplus · Accepted Answer

Asset and expense accounts are expected to have debit balances, meaning they increase on the debit side and decrease on the credit side. This is because they represent items that the company owns or uses and are recorded as positive values on the balance sheet. Credit balances are more often seen in liability and equity accounts, which represent the sources of funds for the company. Large or negative balances do not necessarily apply to asset and expense accounts as they are dependent on individual transactions and the overall financial position of the company.

Asset and Expense Accounts Normally Have