An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Question

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Generally, expenses have a debit balance, so a credit balance in an expense account would indicate an error in recording. A debit balance in the dividends account (A) is normal, as dividends are a distribution of profits to shareholders and are recorded as withdrawals from the company's equity. A credit balance in a liabilities account (C) could be normal, as certain liabilities can have a credit balance, such as unearned revenue. A credit balance in a revenue account (D) is normal, as revenues have a credit balance.

An Awareness of the Normal Balances of Accounts Would Help