What type of account typically has a credit normal balance?

In accounting, each type of account has a normal balance that reflects how increases and decreases in that account are recorded. Accounts with a credit normal balance increase with credits and decrease with debits. Revenue accounts, which record the income earned by a business, are classified as having a credit normal balance. When a company earns revenue, it records an increase in the revenue account, which is done by crediting the account.

For example, if a company provides services and earns $1,000, it will credit the revenue account to reflect that increase. This credit increases the balance of the revenue account, acknowledging the income generated through business operations.

On the other hand, accounts such as assets and expenses have a debit normal balance. This means they increase with debits and decrease with credits. Liability accounts, while they have a credit balance as well, do not represent income generated by the business but rather obligations that the business owes to creditors. Revenue specifically denotes inflow of economic benefits, thus reinforcing why it is categorized under accounts with a credit normal balance.