What is the normal balance of revenue accounts?

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Multiple Choice

What is the normal balance of revenue accounts?

Explanation:
Revenues increase owners’ equity when earned, so the normal balance for revenue accounts is a credit. In typical entries you record revenue by creditting the revenue account and debiting cash or accounts receivable, reflecting the increase in equity. Debiting revenue would reduce it, which isn’t how revenue behaves. Revenue accounts are temporary and are closed to retained earnings at period end, but their normal balance remains credit. The other options don’t fit because a debit would not represent normal increases in revenue, and stating both or neither ignores the actual credit nature of revenue.

Revenues increase owners’ equity when earned, so the normal balance for revenue accounts is a credit. In typical entries you record revenue by creditting the revenue account and debiting cash or accounts receivable, reflecting the increase in equity. Debiting revenue would reduce it, which isn’t how revenue behaves. Revenue accounts are temporary and are closed to retained earnings at period end, but their normal balance remains credit. The other options don’t fit because a debit would not represent normal increases in revenue, and stating both or neither ignores the actual credit nature of revenue.

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