The normal balance of a revenue account is a ________ because revenues increase ________.
A)credit,assets
B)debit,expenses
C)debit,Retained Earnings
D)credit,Retained Earnings

Question

Quizplus · Accepted Answer

The normal balance of a revenue account is a credit because revenues increase the Retained Earnings account, which is a stockholders' equity account. Therefore, option D is correct. Option A is incorrect because assets are not affected by revenue accounts. Option B is incorrect because expenses have a debit balance. Option C is incorrect because Retained Earnings is affected by revenues but it is not the normal balance of a revenue account.

The Normal Balance of a Revenue Account Is a ________