For each of the following accounts, indicate whether a debit or a credit decreases its normal balance:1. Asset2. Liability3. RevenueWhich of the following correctly matches the type of entry (debit or credit) that decreases the normal balance for each account listed above (in order)?

• A. 1. Credit, 2. Debit, 3. Debit
• B. 1. Debit, 2. Debit, 3. Credit
• C. 1. Debit, 2. Credit, 3. Credit
• D. 1. Credit, 2. Credit, 3. Debit

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of normal balance. In accounting, each account type has a normal balance, which is the side (debit or credit) that increases the account. For example, assets have a normal debit balance, liabilities have a normal credit balance, and revenues have a normal credit balance.
2. Step 2: Determine how to decrease the normal balance for each account type. To decrease an account's normal balance, you record an entry on the opposite side of its normal balance. For assets (normal debit balance), a credit decreases the balance. For liabilities (normal credit balance), a debit decreases the balance. For revenues (normal credit balance), a debit decreases the balance.
3. Step 3: Match the type of entry (debit or credit) that decreases the normal balance for each account listed. Based on the analysis: 1. Asset (credit decreases), 2. Liability (debit decreases), 3. Revenue (debit decreases).
4. Step 4: Compare the correct matches to the provided answer choices. The correct sequence is: 1. Credit, 2. Debit, 3. Debit.
5. Step 5: Select the answer choice that matches the correct sequence. The correct answer is: 1. Credit, 2. Debit, 3. Debit.