Which of the Following Statements Is Correct

question 52

Multiple Choice

Which of the following statements is correct?

• A) The normal balance for an asset is a credit.
• B) The normal balance for equity is a credit.
• C) The normal balance for income is a debit.
• D) The normal balance for a liability is a debit.

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Definitions:

Measurement System

The collection of units of measurement and rules relating them to each other, used to quantify physical quantities.

Accounting Equation

A fundamental principle of accounting stating that assets equal liabilities plus owners' equity, representing the balance sheet's structure.

Assets

Resources owned or controlled by a business, expected to produce benefits or economic value in the future.

Liabilities

The financial obligations of a business entity, including debts and other amounts owed to creditors.