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Why is that the way things are done

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Question 1: The normal balance in an asset account is a debit. It's also the normal balance for an expense account. The normal balance for a liability and owner's equity accounts is a credit. Credit is the normal balance for revenues as well. This seems odd. Assets (economic resources) & expenses (outflows incurred to generate revenues) have the same normal balance and so do liabilities (amounts owed or creditor claims) and revenues (increases in equity from business transactions). It seems contradictory. Why is that the way things are done?

Reference no: EM132481496

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