Which type of accounts generally has a normal debit balance under double-entry accounting?

• A. Liabilities and equity
• B. Assets and expenses
• C. Equity and revenues
• D. Liabilities and revenues

Answer: (B)

Verified step by step guidance

1. Understand the concept of 'normal balance' in double-entry accounting: it refers to the side (debit or credit) where increases to an account are recorded.
2. Recall that asset accounts typically increase with debits, so they have a normal debit balance.
3. Recognize that expense accounts also increase with debits, meaning they too have a normal debit balance.
4. Contrast this with liability, equity, and revenue accounts, which generally increase with credits and thus have normal credit balances.
5. Conclude that the types of accounts with a normal debit balance are assets and expenses.