Assuming normal balances, which of the following statements is not true for T accounts? a. The excess of the credits of a liability account over the debits is the balance of the account. b. The excess of the credits of an asset account over the debits is the balance of the account. c. The excess of the credits of a stockholder's equity account over the debits is the balance of the account. d. The excess of the debits of an expense account over the credits is the balance of the account.

Question

Junior

Business

6 May, 09:17

Assuming normal balances, which of the following statements is not true for T accounts? a. The excess of the credits of a liability account over the debits is the balance of the account. b. The excess of the credits of an asset account over the debits is the balance of the account. c. The excess of the credits of a stockholder's equity account over the debits is the balance of the account. d. The excess of the debits of an expense account over the credits is the balance of the account.

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Leanna Kim · Answer 1

B. The excess of the credits of an asset account over the debits is the balance of the account.

Explanation:

The normal balance of an Asset is DEBIT.

So saying that the excess of the credits over the debits will be the balance of the account is not true.

Choice A is true since Liabilities are normally credits.

Choice C is also true since stockholder's equity are normally credits.

Lastly, Choice D is true because Expenses are normally credits.