Which of the following account with normal balance is shown at the credit side of a trial balance?
Correct answer: A. Accrued expenses accountAccounting & Auditing
- A. Accrued expenses accountAccounting & Auditing
- B. Bank account
- C. Equipment account
- D. Cash account
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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