Question

In a double-entry accounting system: Select one: A. All accounts have normal debit balances B. A credit entry records a decrease in an account C. Liabilities, common stock, and expense accounts all have normal credit balances D. A debit entry is recorded on the left side of an account g

Answer 1

In a double-entry accounting system, liabilities, common stock, and expense accounts all have normal credit balances.

Step-by-step explanation:

In a double-entry accounting system, the correct statement is:

C. Liabilities, common stock, and expense accounts all have normal credit balances

A double-entry accounting system is based on the principle that each transaction has two entries: a debit entry and a credit entry. Debit entries are recorded on the left side of an account, whereas credit entries are recorded on the right side of an account.

Liabilities, common stock, and expense accounts increase with credit entries, so they have normal credit balances.

Answer 2

The correct answer is D. A debit entry is recorded on the left side of an account.