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Question
Fill in the blanks with correct alternative and rewrite the statements.
___________ accounts usually shows a debit balance.
Fill in the blanks with correct alternative and rewrite the statements.
___________ accounts usually shows a debit balance.
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Solution
The correct option is B Real
Real account usually shows a debit balance.A real account is an account hat retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity. Examples of real accounts are: Accounts payable. Retained earnings.
Assets, expenses, losses, and the owner's drawing account will normally have debit balances. Their balances will increase with a debit entry, and will decrease with a credit entry.
Real account usually shows a debit balance.
A real account is an account hat retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity. Examples of real accounts are: Accounts payable. Retained earnings.
Assets, expenses, losses, and the owner's drawing account will normally have debit balances. Their balances will increase with a debit entry, and will decrease with a credit entry.
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