A debit is not the normal balance for the Service Revenue account.

Here's why:

1. In accounting, each account has a normal balance, which is either a debit or a credit. This is the side (debit or credit) that increases the balance of the account.

2. Dividends, Cash, and Accounts Receivable are all accounts that have a normal debit balance. This means that increases to these accounts are recorded as debits.

3. Dividends is a contra equity account, which means it reduces equity. Since equity accounts normally have a credit balance, contra equity accounts like Dividends have a debit balance.

4. Cash and Accounts Receivable are asset accounts, and asset accounts have a normal debit balance.

5. On the other hand, Service Revenue is a revenue account, and revenue accounts have a normal credit balance. This means that increases to the Service Revenue account are recorded as credits. Therefore, a debit is not the normal balance for the Service Revenue account.

Question

A debit is not the normal balance for the Service Revenue account.

Here's why:

1. In accounting, each account has a normal balance, which is either a debit or a credit. This is the side (debit or credit) that increases the balance of the account.

2. Dividends, Cash, and Accounts Receivable are all accounts that have a normal debit balance. This means that increases to these accounts are recorded as debits.

3. Dividends is a contra equity account, which means it reduces equity. Since equity accounts normally have a credit balance, contra equity accounts like Dividends have a debit balance.

4. Cash and Accounts Receivable are asset accounts, and asset accounts have a normal debit balance.

5. On the other hand, Service Revenue is a revenue account, and revenue accounts have a normal credit balance. This means that increases to the Service Revenue account are recorded as credits. Therefore, a debit is not the normal balance for the Service Revenue account.

Knowee AI · Accepted Answer

A debit is not the normal balance for the Service Revenue account.

Here's why:

1. In accounting, each account has a normal balance, which is either a debit or a credit. This is the side (debit or credit) that increases the balance of the account.

2. Dividends, Cash, and Accounts Receivable are all accounts that have a normal debit balance. This means that increases to these accounts are recorded as debits.

3. Dividends is a contra equity account, which means it reduces equity. Since equity accounts normally have a credit balance, contra equity accounts like Dividends have a debit balance.

4. Cash and Accounts Receivable are asset accounts, and asset accounts have a normal debit balance.

5. On the other hand, Service Revenue is a revenue account, and revenue accounts have a normal credit balance. This means that increases to the Service Revenue account are recorded as credits. Therefore, a debit is not the normal balance for the Service Revenue account.

A debit is not the normal balance for which account listed below? Group of answer choices Dividends Cash Accounts Receivable Service Revenue

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