Purchase Solution

normal balance for asset and liability accounts

Not what you're looking for?

Ask Custom Question

Identify the normal balance for asset and liability accounts. What is the reasoning behind the "normal balances" for these accounts?

Purchase this Solution
Solution Summary

Normal balance for asset and liability accounts are examined. The reasoning behind the normal balances for these accounts are determined.

Solution Preview

Normal balance is the accounting classification of an account. It is part of double-entry book-keeping technique.

An account has either credit or debit normal balance. To increase the value of an account with normal balance of credit, one would credit the account. To increase the value of an ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Motivation

This tests some key elements of major motivation theories.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Debit and Credit and Normal Balance

    215089 Debit and Credit and Normal Balance Also see attached file In columns (a) and (b) indicate whether the change in the account would be recorded as a debit or a credit and whether the normal balance of the account is a debit or a credit.

  • Identify debits, credits, and normal balances.

    Increase Debit Asset Cash Decrease Debit Jan. 20 Asset Cash Increase Debit Asset Accounts Receivable Decrease Debit Jan. 23 Liability Accounts Payable Decrease Credit Asset Cash Decrease Debit Jan. 28 Stockholders Equity Dividends Increase Debit

  • Selected transactions for H. Burns, Inc.

    (d) The normal balance of the specific account.

  • Classify by type of account and effects

    increase debit Liability Accounts increase credit Payable 11 Asset Accounts increase debit Stockholders Service increase credit Receivable Equity (Revenues increase retained earnings and so are

  • Account Classifications

    Use CA for current asset, NCA for noncurrent asset, CL for current liability, NCL for noncurrent liability, and SE for stockholders' equity. Also indicate whether the account normally has a debit or credit balance.

  • This post provides the correct journal entries needed.

    (a) a liability is debited (dividends payable) and an asset is credited (cash) (b) the amount is 400 (c) the liability (dividends) is increased and cash (the asset) is decreased (d) liabilities have a credit balance and assets have a debit balance

  • Identifying Journal Transactions

    For each transaction indicate the following: (a) The basic type of account debited and credited (asset, liability, stockholders' equity). (b) The specific account debited and credited (cash, rent expense, service revenue, etc.).

  • D. Reyes, Inc., an interior decorating firm

    Instructions For each transaction indicate the following. (a) The basic type of account debited and credited (asset, liability, stockholders' equity). (b) The specific account debited and credited (cash, rent expense, service revenue, etc.).

  • Various Accounting Multiple Choice

    The Accounts Payable account's proper classification and normal account balance are: a. Asset b. Liability c. Owner's equity d. Revenue 6. The Inventory account's proper classification is: a. Revenue b. Expense c.

View More Related Solutions