Asked by Savannah Calkins on Jun 07, 2024
Verified
Asset accounts normally have debit balances and revenue accounts normally have credit balances.
Asset Accounts
These accounts on the balance sheet represent the resources owned or controlled by a business, which provide future economic benefits.
Revenue Accounts
Accounts that track the income generated by a company from its normal business operations, such as sales of goods or services.
Debit Balances
Accounts in a company's ledger that have a positive balance in a debit account or a negative balance in a credit account, typically assets and expenses.
- Recognize the attributes and management approaches for various account types, such as assets, liabilities, equity, revenues, and expenses.
- Understand the principles of debits and credits along with their effects on account balances.
Verified Answer
RP
Rushil PatelJun 08, 2024
Final Answer :
True
Explanation :
Asset accounts increase with debits and decrease with credits, reflecting their normal debit balance. Revenue accounts increase with credits and decrease with debits, reflecting their normal credit balance.
Learning Objectives
- Recognize the attributes and management approaches for various account types, such as assets, liabilities, equity, revenues, and expenses.
- Understand the principles of debits and credits along with their effects on account balances.