Income Statement Normal Balance
![Normal Balances Png 458 373 Bookkeeping Business Accounting Student Accounting Basics](https://i.pinimg.com/originals/96/b6/51/96b651b7f16e461a2cdb3e24ef70d087.png)
The income statement totals the debits and credits to determine net income before taxes the income statement can be run at any time during the fiscal year to show a company s profitability.
Income statement normal balance. Contra asset normal balance. An asset is normally a debit balance so a contra asset account such as accumulated depreciation is normally a credit balance using the normal balance although each account has a normal balance in practice it is possible for any account to have either a debit or a credit balance depending on the bookkeeping entries made. Legal fees expense. Normal balance debit income statement.
Expense increase with debit decrease with credit normal balance debit income statement. While a balance sheet provides the snapshot of a company s financials as of a particular date the income statement reports income through a particular time period and its heading indicates the. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts it is possible for an account expected to have a normal balance as a debit to actually have a credit balance and vice versa but these situations should be in the minority.