Which of the following accounts has a credit balance?

Which of the following accounts has a credit balance?

  • A.
    Capital
  • B.
    Cash
  • C.
    Drawings
  • D.
    Premises
Correct Answer: Option A
Explanation

Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normallyhave credit balances. Income has a normal credit balance since it increasescapital . 

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