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WAEC Financial Accounting 2013 Question 3

Question 3

Double Entry and the Ledger

A credit balance is

  1. A.a liability or an expense.
  2. B.a liability or an income.
  3. C.an expenditure or an income.
  4. D.an asset or an expense.
Show the answer and explanation

Answer: B (a liability or an income.)

Explanation

Liabilities, capital and incomes have credit balances; assets and expenses have debit balances.