A knowledge of the normal balances of accounts would help you spot which of the following as an error in recording?
A)a debit balance in the Dividends Declared account
B)a credit balance in an expense account
C)a credit balance in a liabilities account
D)a credit balance in a revenue account

Question

Quizplus · Accepted Answer

Expense accounts normally have a debit balance because they decrease equity. A credit balance in an expense account suggests an error in recording, as it implies the account has been credited when it should be debited for expenses incurred.

A Knowledge of the Normal Balances of Accounts Would Help