Which of the following accounts normally has a credit balance?
A)Accumulated amortization
B)Accounts receivable
C)Dividends declared
D)Rent expense

Question

Quizplus · Accepted Answer

Accumulated amortization is a contra asset account, which means it has an opposite balance to its corresponding account (in this case, the asset being depreciated or amortized). Since assets normally have debit balances, their contra accounts (like accumulated amortization) normally have credit balances.

Which of the Following Accounts Normally Has a Credit Balance