Assets have a ________ debit balance.

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Multiple Choice

Assets have a ________ debit balance.

Explanation:
In double-entry accounting, asset accounts increase with debits and decrease with credits, so their balances sit on the debit side. Because assets typically grow when you debit them, the balance that appears most often is a debit balance—this is called the normal debit balance. For example, cash, accounts receivable, and equipment normally show debit balances. The other words don’t describe how balances are shown for asset accounts.

In double-entry accounting, asset accounts increase with debits and decrease with credits, so their balances sit on the debit side. Because assets typically grow when you debit them, the balance that appears most often is a debit balance—this is called the normal debit balance. For example, cash, accounts receivable, and equipment normally show debit balances. The other words don’t describe how balances are shown for asset accounts.

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