Question
In each of the following sentences, select the appropriate answer option as debit or credit. 1. The owner's capital account normally has a & balance. This account increases on the & side and decreases on the & side. & }(l) 2. Asset accounts normally have side and decrease on the & balances. These accounts increase on the & 3. Expense accounts normally have side and decrease on the & balances. These accounts increase on the & 4. Liability accounts normally have & balances. These accounts increase on the & side and decrease on the & side. & 5. Revenue accounts normally have side and decrease on the & balances. These accounts increase on the &
Answer
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(316 Votes)
Faye
Elite · Tutor for 8 years
Answer
### 1. The owner's capital account normally has a credit balance. This account increases on the credit side and decreases on the debit side.### 2. Asset accounts normally have debit balances. These accounts increase on the debit side and decrease on the credit side.### 3. Expense accounts normally have debit balances. These accounts increase on the debit side and decrease on the credit side.### 4. Liability accounts normally have credit balances. These accounts increase on the credit side and decrease on the debit side.### 5. Revenue accounts normally have credit balances. These accounts increase on the credit side and decrease on the debit side.
Explanation
## Step 1: Identify the normal balance for each account type### Determine whether the normal balance for each account type is a debit or credit.## Step 2: Determine the side on which the account increases### Identify whether the account increases on the debit or credit side.## Step 3: Determine the side on which the account decreases### Identify whether the account decreases on the debit or credit side.