Question: why do asset account have a normal balance which is debit and liabilities and stockholders equity accounts have a normal balance which is credit?

why do asset account have a normal balance which is debit and liabilities and stockholders equity accounts have a normal balance which is credit?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

GRADING: Worth up to 15 points. Carefully READ the instructions on page 3 first. Partially completed problems will earn no creditthat means all requirements must be FULLY completed. All work must be...

Q:

Treasury stock is classified as: An asset account and the normal balance is a debit. A contra asset account and the normal balance is a credit. A revenue account and the normal balance is a credit. A...

Q:

Question 31 What is the book value of a fixed asset? A The asset fair value minus depreciation expense. OB. The asset fair value plus depreciation expense. c. The cost of the asset plus accumulated...

Q:

Please do your best to make sure these questions are answered as accurate as possible and I promise I will LIKE your answer. Thank you Directions for retrieving an annual report: All public companies...

Q:

( 1 2 points ) Weldon Industrial Gas Corporation supplies acetylene and other essed gases to industry. Data regarding the store's operations follow: The company sells each unit for $ 5 5 . Budgeted...

Q:

Assets Cash 1, Accounts Receivable Inventory Prepaid Expenses Long-term Investments Plant Assets Accumulated depreciation Boca inc. Balance Sheets December 31 Total Liabilities and Stockholders'...

Q:

Question 21 puestion 21 Which statement is correct about the Accumulated Depreciation account: A It is a contra asset account and its normal balance is a debit OB.It is an asset account that is used...

Q:

Balance sheet completion using ratios Complete the 2015 balance sheet for OKeefe Industries using the information that follows it. The following financial data for 2015 are also available: 1. Sales...

Q:

GRADING: Worth up to 15 points. Carefully READ the instructions on page 3 first. Partially completed problems will earn no credit- that means all requirements must be FULLY completed. All work must...

Q:

Gabelli Corporation was formed on January 1, 2012. At December 31, 2012, John Paulus, the president and sole stockholder, decided to prepare a balance sheet, which appeared as follows. John willingly...

Q:

Presented below is information related to Rizzo Company for its first month of operations. Determine the balances that appear in the accounts payable subsidiary ledger. What Accounts Payable balance...

Q:

Refer to the American Heart Association Conference (Nov. 2005) study to gauge whether animal-assisted therapy can improve the physiological responses of heart failure patients, presented in Exercise....

Q:

If the European subsidiary of a U . S . firm has net exposed assets of euro 5 0 0 , 0 0 0 , and the euro increases in value from $ 1 . 3 0 / euro to $ 1 . 3 5 ? euro the U . S . firm has a...

Q:

As part of its long-term strategic plan, Greenwater Inc. purchased a 34% interest in the common shares of one of its suppliers, Prosperous Company. The purchase price of the investment was $928,330....

Q:

Choose a job that has recently been advertised in your organisation and gather as much material on it as possible. Review: job description; further particulars; person specification; selection...

Q:

Appendix A, PHR and SPHR Knowledge Base, at the end of this book (pages 580588) lists the knowledge someone studying for the HRCI certification exam needs to have in each area of human resource...

Q:

8 What are the strengths and weaknesses of the following methods: (a) interviews (b) psychometric tests (c) work- based tests?