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 the side of the account that increases the account.

Question

Quizplus · Accepted Answer

The normal balance is the side of the account that increases the account. This means that accounts with a normal debit balance will typically have debit entries, but they can also have credit entries. Similarly, accounts with a normal credit balance will typically have credit entries, but they can also have debit entries. Therefore, option A and C are incorrect. Option B is also incorrect because an account could have a zero balance, which is neither positive nor negative.

Which of the Following Is True Regarding Normal Balances of Accounts