Which accounts have normal debit balances?

• A. Liabilities, Owner's Equity, and Revenues
• B. Prepaid Insurance, Accumulated Depreciation, and Notes Payable
• C. Assets, Expenses, and Drawings
• D. Cash, Revenue, and Accounts Receivable

Answer: (C)

Normal debit balances appear on accounts that typically increase with a debit entry. These are assets, expenses, and drawings. Because all three categories – assets, expenses, and drawings – carry debits as their normal side, the set that includes only these types fits the pattern. That’s why this option is the best choice: it lists Assets, Expenses, and Drawings, all of which have normal debit balances.

The other options mix accounts that don’t have debit normals. Liabilities, owner’s equity, and revenues generally increase with credits, so they carry credit balances. Accumulated Depreciation is a contra-asset with a credit balance, and Notes Payable is a liability with a credit balance, while Revenue increases on the credit side.