Which of the Following Correctly Identifies Normal Balances of Accounts

question 96

Multiple Choice

Which of the following correctly identifies normal balances of accounts?

• A)\[\begin{array} { l l }
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Common Stock } & \text { Credit } \\
• \text { Revenues } & \text { Debit } \\
• \text { Expenses } & \text { Credit }
• \end{array}\]
• B)\[\begin{array} { l l }
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Common Stock } & \text { Credit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Credit }
• \end{array}\]
• C)\[\begin{array} { l l }
• \text { Assets } & \text { Credit } \\
• \text { Liabilities } & \text { Debit } \\
• \text { Common Stock } & \text { Debit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Debit }
• \end{array}\]
• D)\[\begin{array} { l l }
• \text { Assets } & \text { Debit } \\
• \text { Liabilities } & \text { Credit } \\
• \text { Common Stock } & \text { Credit } \\
• \text { Revenues } & \text { Credit } \\
• \text { Expenses } & \text { Debit }
• \end{array}\]

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Definitions:

Long-Lived Assets

Assets that have a useful life of more than one year, used in the operation of a company and are not intended for sale, including property, plant, and equipment.

Machinery And Equipment

Fixed assets used in the operation of a business to produce goods and services, typically having a useful life longer than one year.

Long-Lived Assets

Physical assets, such as property, plant, and equipment, expected to provide economic benefits to a company for more than one fiscal year.

Land Improvements

Enhancements made to a parcel of land to increase its value, such as landscaping, fencing, and adding utilities.