Normal balance: Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance . The excess amount of credit side over the debit side is shown as the normal credit balance. Type of account Normal balance Asset account Debit balance Liability account Credit balance Expense account Debit balance Revenue account Credit balance Dividend account Debit balance Table (1) To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

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Answer 1

Question

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

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Students have asked these similar questions

Jenny has learned that assets have debit balances, while liabilities have credit balances. Based on this, she believes that asset accounts can only be debited and liabilities can only be credited. Is Jenny correct? When would we credit an asset and when would we debit a liability?

Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the transaction recorded as a debit or as a credit if it has the effect of lessening a liability?

1. What is the objective of a financial statement? 2. What are the components of a financial statement? 3. What is an SFP? 4. What are the two forms of SFP? 5. What is an asset? 6. What are the essential characteristics of an asset? 7. What is an operating cycle? 8. What is a current asset? 9. What is a noncurrent asset? 10. What is a liability? 11. What are the essential characteristics of a liability? 12. What is a current liability? 13. What is a noncurrent liability? 14. What are the elements comprising the equity?

Answer 2

Question

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

Answer 6

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

Answer 7

Chapter 2, Problem 7RQ

To determine

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.

Type of account Normal balance
Asset account Debit balance
Liability account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividend account Debit balance

Table (1)

To Explain: Whether Person J is correct on her belief that asset accounts can only be debited, and liabilities can only be credited.

Answer 8

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

Answer 9

To determine

To Explain: The situation in which asset account would be credited and a liability account would be debited.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

Ch. 2 - Prob. 1RQ Ch. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQ Ch. 2 - Prob. 6RQ Ch. 2 - Prob. 7RQ Ch. 2 - Prob. 8RQ Ch. 2 - Prob. 9RQ Ch. 2 - 10.Suzanne knows that an increase to an expense...

Solution Summary: The author explains that normal balance refers to the excess of amount on one side, over the other side in an account.

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To Explain: The situation in which asset account would be credited and a liability account would be debited.

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Chapter 2 Solutions

Type of account	Normal balance
Asset account	Debit balance
Liability account	Credit balance
Expense account	Debit balance
Revenue account	Credit balance
Dividend account	Debit balance