Final answer:
The normal balance in Liability accounts is credit. When liabilities increase, they are credited, and when they decrease, they are debited.
Step-by-step explanation:
The normal balance in Liability accounts indicated by standard accounting practices is credit.
In accounting, every transaction affects two accounts - one account is debited, and another account is credited. The normal balance of an account is on the side where an increase in that account is recorded. For Liability accounts, such as loans payable, accounts payable, and accrued expenses, the normal balance is on the credit side. This means that when the liabilities increase, they are credited, and when they decrease, they are debited.
For example, if a company takes out a loan, it would credit the Liability account, increasing the loan amount. On the other hand, when the company makes a payment towards the loan, it would debit the Liability account, reducing the outstanding balance.