Assets have a ________ debit balance.

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Asset Tracking and Sales Test by studying with curated questions and in-depth explanations. Master the material and boost your chances of success!

Multiple Choice

Assets have a ________ debit balance.

Explanation:
In double-entry accounting, asset accounts increase with debits and decrease with credits, so their balances sit on the debit side. Because assets typically grow when you debit them, the balance that appears most often is a debit balance—this is called the normal debit balance. For example, cash, accounts receivable, and equipment normally show debit balances. The other words don’t describe how balances are shown for asset accounts.

In double-entry accounting, asset accounts increase with debits and decrease with credits, so their balances sit on the debit side. Because assets typically grow when you debit them, the balance that appears most often is a debit balance—this is called the normal debit balance. For example, cash, accounts receivable, and equipment normally show debit balances. The other words don’t describe how balances are shown for asset accounts.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy