An account is said to have a debit balance if:

• A. the total credits exceed the total debits in the account.
• B. the account has only credit entries.
• C. the account has equal debit and credit entries.
• D. the total debits exceed the total credits in the account.

Answer: (D)

Verified step by step guidance

1. Understand the concept of a debit balance: A debit balance occurs when the total debits in an account exceed the total credits. This is typical for asset, expense, and dividend accounts in financial accounting.
2. Review the structure of accounts: In double-entry accounting, every transaction affects at least two accounts, with one account debited and the other credited. Debit entries increase asset and expense accounts, while credit entries increase liability, equity, and revenue accounts.
3. Analyze the options provided: Evaluate each statement to determine which aligns with the definition of a debit balance. For example, 'the total credits exceed the total debits' would result in a credit balance, not a debit balance.
4. Focus on the correct answer: The correct answer is 'the total debits exceed the total credits in the account,' as this matches the definition of a debit balance.
5. Apply this understanding to practical scenarios: Practice identifying debit balances in real-world examples, such as reviewing a trial balance or analyzing individual ledger accounts to reinforce the concept.