Which of the following statements is incorrect? a. The normal balance of the receivable account is a debit. b. The normal balance of the owner’s personal account is a debit. c. The normal balance of an unearned revenues account is a credit. d. The normal balance of an expense account is a credit. e. All of the above statements are correct.

Step 1: Define the Problem

Identify which statement about normal account balances is incorrect.

Step 2: Break Down the Problem

Evaluate each statement to determine its correctness:

• a. Normal balance of receivable account
• b. Normal balance of owner’s personal account
• c. Normal balance of unearned revenues account
• d. Normal balance of expense account
• e. All statements are correct

Step 3: Apply Relevant Concepts

• Receivable Account: Normally has a debit balance.
• Owner’s Personal Account: Typically refers to drawings or withdrawals, which have a debit balance.
• Unearned Revenues Account: Normally has a credit balance because it represents a liability.
• Expense Account: Normally has a debit balance because expenses decrease equity.

Step 4: Analysis, Verify and Summarize

• Statement a: Correct, as receivables are assets with a normal debit balance.
• Statement b: Incorrect, as the owner’s personal account (drawings) should have a debit balance, but it is not typically referred to as a "personal account."
• Statement c: Correct, as unearned revenues are liabilities with a normal credit balance.
• Statement d: Incorrect, as expenses have a normal debit balance.
• Statement e: Incorrect, as not all statements are correct.

Final Answer

The incorrect statement is d. The normal balance of an expense account is a credit.