Assuming a normal balance, which of the following is correct concerning the trial balance columns of the work sheet?
A) Assets are shown as credits.
B) Liabilities are shown as debits.
C) The drawing account is shown as a debit.
D) Expenses are shown as credits.

Question

Quizplus · Accepted Answer

The drawing account is shown as a debit because it represents the owner's withdrawals from the business, which decrease equity and are therefore recorded as debits in a normal balance system. Assets and expenses are also debited in a normal balance, while liabilities are credited.

Assuming a Normal Balance, Which of the Following Is Correct