Identify the accounts that would normally have balances in the credit column of a business's trial balance.
A)Liabilities and expenses.
B)Assets and revenues.
C)Revenues and expenses.
D)Revenues and liabilities.
E)Dividends and liabilities.

Question

Quizplus · Accepted Answer

Revenues and liabilities normally have credit balances. Revenues increase with credits and decrease with debits, reflecting the inflow of assets from the sale of goods or services. Liabilities increase with credits because they represent amounts the business owes, which decrease with payments (debits).

Identify the Accounts That Would Normally Have Balances in the Credit