What are in normal balances of accounts?

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1250557

2026-07-08 03:55

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The normal balance of an account refers to the side (debit or credit) that increases the account's balance. For asset accounts, the normal balance is a debit, while for liability and equity accounts, it is a credit. Revenue accounts also have a normal credit balance, and expense accounts typically have a normal debit balance. Understanding these normal balances is crucial for accurate bookkeeping and financial reporting.

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