Question 24 Which. One is False? Income Tax Payable should have a Normal Credit Balance Cash should have a Normal Debit Balance Revenue should have a Normal Debit Balance Dividends should have a Normal Debit Balance

Ah, the world of accounting, where balance is key! In this case, the statement "Revenue should have a Normal Debit Balance" is indeed false. Revenue accounts typically have a normal credit balance since they increase equity when earned. So next time you see an income statement with debits in revenue, you might just do a double-take! Now, let’s not forget the delightful dance of debits and credits! Remember, assets and expenses happily sport a normal debit balance, while liabilities, equity, and revenues flaunt their credit balances. Understanding these basics can prevent the dreaded errors that make your financial statements go wonky!