Asked by
Grace Beddows
on Nov 14, 2024Verified
An account will have a credit balance if the
A) credits exceed the debits.
B) first transaction entered was a credit.
C) debits exceed the credits.
D) last transaction entered was a credit.
Credit Balance
Credit Balance refers to the amount of money a company owes to its customers, creditors, or depositors in their respective accounts.
Credits
Accounting entries that decrease assets or increase liabilities and equity on the balance sheet.
Debits
In accounting, debits are entries on the left side of an account ledger, indicating increases in asset or expense accounts, or decreases in liability, equity, or revenue accounts.
- Pinpoint and grasp the normal balances specific to different types of accounts.
- Examine the integrity and correctness of bookkeeping entries.
Verified Answer
AR
Learning Objectives
- Pinpoint and grasp the normal balances specific to different types of accounts.
- Examine the integrity and correctness of bookkeeping entries.