Cengage Accounting Exam 1 Practice Test

Which statement is true about accounts with a debit balance?

They have more credits than debits. They have more debits than credits. They always have a zero balance. They are always asset accounts.

Correct Answer:

They have more debits than credits.

Explanation:

A debit balance means the debits recorded in an account exceed the credits, so the account’s balance sits on the debit side. In standard accounting, this is true for asset and expense accounts, which naturally carry debit balances. So when an account shows a debit balance, it reflects more debits than credits. This is why the statement is true: the account has more debits than credits. It’s not about always being assets, since expenses also have debit balances, and it’s not about having credits or a zero balance in general.

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