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Figure 23.2
Identify the labeled structure(s) in each of the following questions.
-Identify the structure(s) indicated by Label L.
Normal Balance
The usual debit or credit balance that an account type is expected to have, which helps in ensuring the correct recording of transactions.
Debit
An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.
Dividends Declared
Profits distributed by a company to its shareholders, usually determined by the board of directors, and not yet paid out.
Normal Balance
The side (debit or credit) of an account that is typically increased; for assets and expenses, it's a debit; for liabilities, equity, and revenue, it's a credit.
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