Which of the following accounts normally has a debit balance?

Question

Quizplus · Accepted Answer

Dividends are distributions of profits to shareholders, and since they decrease equity, they have a debit balance.

Answer: B 
 Retained earnings are the accumulated profits of a company that have not been distributed to shareholders as dividends. Since they are part of equity, they have a credit balance. However, if retained earnings have a deficit, they will have a debit balance.

Answer: C 
 Share capital is the total amount of funds raised by a company through the sale of shares. Since it is a source of equity, it has a credit balance.

Answer: D 
 Revenue is the income generated by a company through sales, services rendered or other activities. Since it increases equity, it has a credit balance.

Which of the Following Accounts Normally Has a Debit Balance