1. What does the term 'normal account balance' refer to in accounting?
2. What is the primary role of credit balance criteria in accounting?
3. In the expanded accounting equation, which of the following accounts is explicitly included to reflect the company's accumulated net income and distributions?
Normal account balance — definition?
The side (debit or credit) that increases an account.
Expanded accounting equation — includes?
Assets = Liabilities + Common Stock + Retained Earnings.
Credit balance criteria — accounts?
Liabilities, equity, and revenues normally have credit balances.
Normal balance — definition?
Side that increases account amount.
Asset accounts — normal balance?
Debit.
Liability, equity — normal balance?
Credit.
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