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

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra-asset account, which means its normal balance is opposite to the account it offsets. Since assets have a debit balance, accumulated depreciation (which reduces the value of assets) has a credit balance. Accounts receivable, dividends declared, and rent expense are all accounts that typically have a debit balance.

Which of the Following Accounts Normally Has a Credit Balance