Explain in your own words on why you believe that the statement below is true:© BrainMass Inc. brainmass.com June 3, 2020, 10:22 pm ad1c9bdddf
Yes, there are a couple of accounts in the liability and equity sections of balance sheets that don't follow the rules of all the other accounts in those two sections.
One is Dividends which will always have a debit balance, if it has any transactions. It is a reduction of an equity account ...
The solution presents three particular accounts which are on the credit side of the accounting equation, but have normal debit balances. Each is explained for what it is and why it is separately shown from its credit partner.