Normal balances are the side that increase the account balance.

Question

Quizplus · Accepted Answer

This is correct. The normal balance is the side that increases the account balance. For example, in an asset account like cash, the normal balance is on the debit side, which means that when money is added to the account, the debit balance increases. For a liability account like accounts payable, the normal balance is on the credit side, which means that when a payment is made and the liability is reduced, the credit balance decreases.

Normal Balances Are the Side That Increase the Account Balance