Which of the following accounts has a normal debit balance?
Question
Which of the following accounts has a normal debit balance?
Solution
Step 1: Define the Problem
Identify which type of account typically has a normal debit balance.
Step 2: Break Down the Problem
Accounts can be categorized into:
- Assets
- Liabilities
- Equity
- Revenue
- Expenses
Step 3: Apply Relevant Concepts
- Assets and Expenses accounts typically have a normal debit balance.
- Liabilities, Equity, and Revenue accounts typically have a normal credit balance.
Step 4: Analysis, Verify and Summarize
- Assets: Increase with debits, decrease with credits.
- Expenses: Increase with debits, decrease with credits.
- Liabilities, Equity, Revenue: Increase with credits, decrease with debits.
Final Answer
Accounts with a normal debit balance are typically Assets and Expenses accounts.
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