The normal balance of asset account is A. Credit balance B. Debit balance C. Cash balance D. Neither debit nor credit balance

The correct answer is A. Credit balance.

An asset account is a record of a company’s resources that have economic value and are expected to benefit the company in the future. The normal balance of an asset account is a credit balance. This means that when an asset increases, the account is credited, and when an asset decreases, the account is debited.

For example, if a company buys a new piece of equipment,

The normal balance of an account is determined by the type of account. Asset accounts have a normal credit balance, liability accounts have a normal debit balance, and equity accounts have a normal credit balance.

Here is a brief explanation of each option:

• Option A: Credit balance. This is the correct answer. The normal balance of an asset account is a credit balance.
• Option B: Debit
  Subscribe on YouTube
  balance. This is the incorrect answer. The normal balance of an asset account is a credit balance, not a debit balance.
• Option C: Cash balance. This is the incorrect answer. The cash balance is a specific type of asset, and the normal balance of all asset accounts is a credit balance.
• Option D: Neither debit nor credit balance. This is the incorrect answer. All accounts have a normal balance, either a debit balance or a credit balance.