1) What is the normal balance of asset accounts? a) Debit b) Credit c) Cash d) Debts 2) What is the normal balance of liabilities? a) Accounts Payable b) Cash c) Credit d) Debit 3) If a company is recording a decrease in cash, would they debit or credit cash? a) Debit b) Credit 4) If a company is recording an increase in equity, would they debit or credit the equity account? a) Credit b) Debit 5) What is the normal balance of an expense account? a) Debit b) Credit c) Rent d) Insurance

Normal Balances

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