Which of the following accounts normally have credit balances?

• A. Liabilities
• B. Expenses
• C. Revenue
• D. Assets

Answer: (C)

Verified step by step guidance

1. Understand the concept of normal account balances: In accounting, accounts are classified into categories, and each category has a normal balance type (either debit or credit). This is based on the accounting equation: Assets = Liabilities + Equity.
2. Identify the accounts listed in the problem: The accounts mentioned are Liabilities, Expenses, Revenue, and Assets. Each of these falls into a specific category in the accounting framework.
3. Determine the normal balance for each account type: Liabilities and Revenue accounts typically have credit balances because they increase equity or represent obligations. Assets and Expenses typically have debit balances because they represent resources or costs incurred.
4. Match the accounts with their normal balance type: From the problem, Liabilities and Revenue are correctly identified as accounts with normal credit balances. Expenses and Assets are incorrectly listed as having credit balances; they normally have debit balances.
5. Conclude the correct answer: The accounts that normally have credit balances are Liabilities and Revenue. This aligns with the accounting principles and the classification of accounts.