Revenues Have Normal Credit Balances

Revenues are increased by debits.

Revenues have normal credit balances. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts it is possible for an account expected to have a normal balance as a debit to actually have a credit balance and vice versa but these situations should be in the minority. By identifying the type of account asset liability etc and establishing which side of the accounting equation it is on left or right it is possible to determine whether the account would normally have a debit or. Indicates a decrease in revenues earned. Revenues have normal credit balances.

Revenues have a normal credit balance. The accounts that have a normal credit balance include contra asset liability gain revenue owner s equity and stockholders equity accounts. From the table above it can be seen that assets expenses and dividends normally have a debit balance whereas liabilities capital and revenue normally have a credit balance. In contrast accounts that normally have a debit balance include the asset loss contra liability owner s drawing dividend and expense accounts.

Search for an answer or ask weegy. These accounts normally have credit balances that are increased with a credit entry. Why revenues are credited. Revenues cause owner s equity to increase.

A credit to a revenue account. Updated 2 8 2015 2 10 51 pm. Since the normal balance for owner s equity is a credit balance revenues must be recorded as a credit. Indicates an increase in revenues earned.

At the end of the accounting year the credit balances in the revenue accounts will be closed and transferred to the owner s capital account thereby increasing owner s equity. Revenues have a normal credit balance. Asked 2 3 2015 1 34 46 pm. In a t account their balances will be on the right side.

Log in for more information.