Which of the following is true regarding normal balances of accounts?
A) All accounts have a normal debit balance.
B) The normal balance of all accounts will have either a positive or negative balance.
C) Accounts that have a normal debit balance will only have debit entries, never credit entries.
D) The normal balance is on the increase side of the account.

Question

Quizplus · Accepted Answer

The normal balance of an account is on the side where increases to the account are recorded. For asset, expense, and drawing accounts, this is the debit side. For liability, revenue, and equity accounts, it is the credit side.

Which of the Following Is True Regarding Normal Balances of Accounts