Which of the following correctly identifies normal balances of accounts
Which of the following determines the normal balance of an account?
It’s a basic principle whereby Assets = Liabilities + Owner’s Equity (A=L+OE). The Accounting Equation determines whether an account increases with a debit or a credit entry. The normal balance is part of the double-entry bookkeeping method and refers to the expected debit or credit balance in a specified account.
What are normal account balances?
A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts. … An entry reverses a transaction that was in a prior year, and which has already been zeroed out of the account.
Which of the following correctly identifies the basic accounting equation?
The accounting equation is assets = liabilities + stockholders’ equity.
Which of the following accounts has a normal balance of credit?
Recording changes in Income Statement Accounts
| Account Type | Normal Balance |
|---|---|
| Asset | DEBIT |
| Liability | CREDIT |
| Equity | CREDIT |
| Revenue | CREDIT |
Which is a normal account?
The debit or credit balance that would be expected in a specific account in the general ledger. For example, asset accounts and expense accounts normally have debit balances. Revenues, liabilities, and stockholders’ equity accounts normally have credit balances.
What is the normal balance of an account quizlet?
The normal balance is the side of the account that increases the account. Which of the following entries records the receipt of cash for two months’ rent? The cash was received in advance of providing the service. Cash, debit; Unearned Rent, credit.