Normal balances of accounts are always on their increase side.Select one:TrueFalse

Analysis of the Statement

1. Understanding Account Balances:

   • In accounting, each type of account has a normal balance side—either debit or credit.
   • Assets and expenses typically have a normal debit balance, while liabilities, equity, and revenue accounts generally have a normal credit balance.

2. Increase Side Explanation:

   • For an account to increase, you must record transactions on its normal balance side. For example,
     • Debiting an asset account increases its balance.
     • Crediting a liability account increases its balance.

Conclusion

The statement "Normal balances of accounts are always on their increase side" is True. The normal balance of an account indicates the side you would use to increase it, confirming that the statement holds.