Under what conditions will an account balance be a debit?

• A. Only when the account is a liability account
• B. When debits and credits are equal in the account
• C. When the total debits exceed the total credits in the account
• D. When the total credits exceed the total debits in the account

Answer: (C)

Verified step by step guidance

1. Understand the concept of debit and credit: In accounting, debits and credits are used to record transactions. Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.
2. Analyze the account type: Determine whether the account in question is an asset, liability, equity, revenue, or expense account. This will help you understand how debits and credits affect the account balance.
3. Review the condition for a debit balance: A debit balance occurs when the total debits in an account exceed the total credits. This is typical for asset and expense accounts.
4. Compare the total debits and credits: To determine if an account has a debit balance, calculate the sum of all debit entries and compare it to the sum of all credit entries in the account.
5. Conclude based on the comparison: If the total debits are greater than the total credits, the account will have a debit balance. This condition applies regardless of the account type.