Ask Question
26 March, 05:17

Which of the following is true regarding normal balances of accounts? a. All accounts have a normal debit balance. b. Accounts that have a normal debit balance will only have debit entries, never credit entries. c. The normal balance of all accounts will have either a positive or negative balance. d. The normal balance is on the increase side of the account.

+2
Answers (1)
  1. 26 March, 08:34
    0
    Answer: "d. The normal balance is on the increase side of the account." is TRUE.

    Explanation: The option "A" is false because not all accounts have a debit balance. There are accounts with debtor balance and accounts with creditor balance.

    Option "B" is false because all accounts can have debit and credit entries, even if they have a debit balance.

    Option "C" is false because the accounts have no positive and negative results, they have debit and credit balances.

    "Income accounts" are those that reflect a positive and negative result, according to the dynamic equity equation if they have a debit balance they reflect a negative result and if they have a credit balance they reflect a positive result.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following is true regarding normal balances of accounts? a. All accounts have a normal debit balance. b. Accounts that have a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers