Which of the following accounts normally has a credit balance?

• A. Cash
• B. Unearned Revenue
• C. Accounts Receivable
• D. Supplies

Answer: (B)

Verified step by step guidance

1. Understand the concept of account balances: In accounting, asset accounts typically have a debit balance, while liability and equity accounts usually have a credit balance.
2. Identify the nature of each account: Cash, Accounts Receivable, and Supplies are asset accounts, which normally carry debit balances.
3. Recognize that Unearned Revenue is a liability account because it represents money received before services are performed or goods are delivered.
4. Recall that liability accounts normally have credit balances, meaning Unearned Revenue typically has a credit balance.
5. Conclude that among the given options, Unearned Revenue is the account that normally has a credit balance.