Question

Which of the following accounts have only credit balance?

A

Accounts payable account

B

Salaries outstanding account

C

Reserve fund account

D

All of the above accounts

Medium
Solution
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Correct option is D)

An accounts assigned normal balance is on the side where increases go because the increases in any account are usually greater than the decreases. Therefore, asset, expense, and owner's drawing accounts normally have debit balances. Liabilities, revenue, and owner's capital accounts normally have credit balances.

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