Difference between revisions of "Account normal balance"
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| − | [[Account normal balance]] (alternatively known as [[normal balance of an account]]; hereinafter, the ''Balance'') is either a [[credit]] or [[debit]] of any [[financial account]] that is affected when this ''account'' increases. Some accounts such as [[Income Summary]] have no ''Balance''. | + | [[Account normal balance]] (alternatively known as [[normal balance of an account]]; hereinafter, the ''Balance'') is either a [[credit]] or [[debit]] of any [[financial account]] that is affected when this ''account'' increases. Some accounts such as [[Income Summary]] have no ''Balance'' (i.e., these accounts could have a debit or a credit balance). |
Revision as of 11:13, 17 December 2018
Account normal balance (alternatively known as normal balance of an account; hereinafter, the Balance) is either a credit or debit of any financial account that is affected when this account increases. Some accounts such as Income Summary have no Balance (i.e., these accounts could have a debit or a credit balance).
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Normal balance of an account. The side of an account that increases by the rules of debit and credit.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
