Comprehensive and Detailed Explanation:
In accounting, a normal balance refers to the side (debit or credit) that increases the account
balance.
Assets (Option A) normally have a debit balance because they represent resources owned by the
company (cash, accounts receivable, equipment, etc.).
Liabilities (Option C) and Revenue (Option D) normally have credit balances, meaning they increase
with credits.
Capital (Option B) also has a normal credit balance, as it represents owner’s equity.
Reference:
GAAP Accounting Principles – Normal Account Balances
Payroll.org – Payroll Accounting Basics
