Question

Fill in the blanks with correct alternative and rewrite the statements.
Real accounts usually show a ____________ balance.

• A. debit
• B. credit
• C. equal
• D. unequal

Answer 1

The correct option is A debit

Real accounts usually show a debit balance.

Assets, expenses, losses, and the owner's drawing account will normally have debit balances. Their balances will decrease when they debited.

For example, if a company borrows cash from its local bank, the company will debit its asset account Cash since the company's cash balance is increasing.