Asked by Ashley Hammerscchmidt on Apr 27, 2024
Verified
Which of the following types of accounts have a normal credit balance?
A) assets and liabilities
B) liabilities and expenses
C) revenues and common stock
D) common stock and dividends
Normal Credit Balance
Refers to the expected balance type (credit) for certain accounts in accounting, such as revenues, liabilities, and equity accounts.
Liabilities
Financial obligations or debts that a company is required to pay in the future.
Revenues
The total income generated by a company from its business activities, typically from the sale of goods and services to customers.
- Differentiate between various types of accounts based on their normal credit balance and understand how transactions impact these accounts.
Verified Answer
JM
Jolene MaciasApr 28, 2024
Final Answer :
C
Explanation :
Revenues and common stock have a normal credit balance. This means that when a revenue or common stock account is credited, it increases the balance, and when it is debited, it decreases the balance.
Learning Objectives
- Differentiate between various types of accounts based on their normal credit balance and understand how transactions impact these accounts.