Which of the following account with normal balance is shown at the credit side of a trial balance?
Correct answer: D. Accrued expenses accountAccounting & Auditing
- A. Cash account
- B. Bank account
- C. Equipment account
- D. Accrued expenses accountAccounting & Auditing
Explanation
Accrued expenses are liabilities because they represent amounts owed but not yet paid, and liabilities normally have credit balances. Cash, bank, and equipment are assets with debit balances.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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