Which of the following is true?
A)Assets have debit balances and liabilities have credit balances.
B)Assets and liabilities have credit balances.
C)Assets have credit balances and liabilities have debit balances.
D)Assets and liabilities have debit balances.

Question

Quizplus · Accepted Answer

Assets typically have debit balances, reflecting their nature as resources owned or controlled by a business. Liabilities, on the other hand, have credit balances, representing obligations the business owes to others. This distinction is fundamental to the double-entry bookkeeping system.

Which of the Following Is True