Asset accounts normally have debit balances and revenue accounts normally have credit balances.

Name: Asset accounts normally have debit balances and revenue accounts normally have credit balances.
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Question

Quizplus · Accepted Answer

This statement is true. Asset accounts, such as cash or inventory, typically have debit balances because they represent items of value owned by the company. Revenue accounts, such as sales or service revenue, typically have credit balances because they represent income earned by the company.

Asset Accounts Normally Have Debit Balances and Revenue Accounts Normally