Which of the following types of accounts typically have a normal credit balance?

• A. Expense accounts
• B. Revenue accounts
• C. Asset accounts
• D. Liability accounts

Answer: (D)

Verified step by step guidance

1. Understand the concept of normal balances: In accounting, each type of account has a normal balance, which is the side (debit or credit) that increases the account. For example, assets typically have a normal debit balance, while liabilities and revenues typically have a normal credit balance.
2. Review the types of accounts: Expense accounts, revenue accounts, asset accounts, and liability accounts are all part of the accounting equation. Each has a specific normal balance based on its role in the equation.
3. Analyze expense accounts: Expense accounts typically have a normal debit balance because they decrease equity when recorded.
4. Analyze revenue accounts: Revenue accounts typically have a normal credit balance because they increase equity when recorded.
5. Analyze asset and liability accounts: Asset accounts typically have a normal debit balance because they represent resources owned by the business. Liability accounts typically have a normal credit balance because they represent obligations owed by the business.