The normal balance of an account:
A)falls on the side where decreases are recorded.
B)falls on the side where increases are recorded.
C)must be computed after every transaction.
D)cannot be computed in a manual accounting system.

Question

Quizplus · Accepted Answer

The normal balance of an account falls on the side where increases are recorded. For example, the normal balance of the revenue account is a credit balance because revenue is increased by credits. The normal balance of the expense account is a debit balance because expenses are increased by debits.

The Normal Balance of an Account