Which of the following accounts normally has a debit balance?

• A. Service Revenue
• B. Common Stock
• C. Accounts Receivable
• D. Accounts Payable

Answer: (C)

Verified step by step guidance

1. Understand the concept of normal account balances: Asset accounts typically have a normal debit balance, while liability and equity accounts usually have a normal credit balance.
2. Identify the nature of each account listed: Service Revenue is a revenue account, Common Stock is an equity account, Accounts Receivable is an asset account, and Accounts Payable is a liability account.
3. Recall that revenue accounts normally have credit balances because they increase equity, and common stock, as an equity account, also normally has a credit balance.
4. Recognize that Accounts Receivable, being an asset account, normally has a debit balance because it represents amounts owed to the company.
5. Confirm that Accounts Payable, a liability account, normally has a credit balance as it represents amounts the company owes to others.