{"id":231710,"date":"2025-06-11T10:33:30","date_gmt":"2025-06-11T10:33:30","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=231710"},"modified":"2025-06-11T10:33:32","modified_gmt":"2025-06-11T10:33:32","slug":"which-of-the-following-accounts-has-a-normal-credit-balance-2","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/06\/11\/which-of-the-following-accounts-has-a-normal-credit-balance-2\/","title":{"rendered":"which of the following accounts has a normal credit balance"},"content":{"rendered":"\n<p>which of the following accounts has a normal credit balance A. accounts payable B. accounts receivable C. Supplies expense D. T. Stark Capital.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-1-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Correct Answer: A. Accounts Payable<\/strong><\/p>\n\n\n\n<p><strong>Explanation:<\/strong><\/p>\n\n\n\n<p>In accounting, every account has a &#8220;normal balance,&#8221; which refers to the side\u2014debit or credit\u2014where increases to the account are recorded. Understanding normal balances is crucial for accurate bookkeeping and financial reporting.<\/p>\n\n\n\n<p>Accounts are typically classified into five main categories: <strong>Assets<\/strong>, <strong>Liabilities<\/strong>, <strong>Equity<\/strong>, <strong>Revenues<\/strong>, and <strong>Expenses<\/strong>. Each of these categories follows a general rule regarding normal balances:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Assets<\/strong> (e.g., Accounts Receivable, Supplies) have a <strong>normal debit balance<\/strong>.<\/li>\n\n\n\n<li><strong>Liabilities<\/strong> (e.g., Accounts Payable) have a <strong>normal credit balance<\/strong>.<\/li>\n\n\n\n<li><strong>Owner\u2019s Equity<\/strong> (e.g., Capital accounts like T. Stark, Revenues) also have a <strong>normal credit balance<\/strong>.<\/li>\n\n\n\n<li><strong>Expenses<\/strong> (e.g., Supplies Expense) have a <strong>normal debit balance<\/strong>.<\/li>\n\n\n\n<li><strong>Revenues<\/strong> have a <strong>normal credit balance<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p><strong>Accounts Payable<\/strong> is a liability account. It represents the amount a business owes to suppliers or creditors for goods or services received on credit. Since liabilities increase on the credit side, the normal balance of Accounts Payable is a <strong>credit<\/strong>. Any increase in payables is recorded as a credit entry, and any payment made to reduce the liability is recorded as a debit.<\/p>\n\n\n\n<p><strong>Accounts Receivable<\/strong>, in contrast, is an asset account. It records amounts owed to the business by customers. Assets increase with debits, so its normal balance is a <strong>debit<\/strong>.<\/p>\n\n\n\n<p><strong>Supplies Expense<\/strong> is an expense account, which also has a <strong>normal debit balance<\/strong> because expenses decrease owner\u2019s equity.<\/p>\n\n\n\n<p><strong>T. Stark, Capital<\/strong> is an owner\u2019s equity account and has a <strong>normal credit balance<\/strong>. While it shares the same normal balance as liabilities, it is not the best answer here because the question asks for the account with a normal credit balance among all listed options. <strong>Accounts Payable<\/strong> most directly fits this requirement as a liability.<\/p>\n\n\n\n<p>Therefore, <strong>Accounts Payable<\/strong> is the correct choice as the account with a normal <strong>credit<\/strong> balance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/06\/learnexams-banner4-953.jpeg\" alt=\"\" class=\"wp-image-231711\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>which of the following accounts has a normal credit balance A. accounts payable B. accounts receivable C. Supplies expense D. T. Stark Capital. The Correct Answer and Explanation is: Correct Answer: A. Accounts Payable Explanation: In accounting, every account has a &#8220;normal balance,&#8221; which refers to the side\u2014debit or credit\u2014where increases to the account are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-231710","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/231710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=231710"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/231710\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=231710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=231710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=231710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}