What is a trial balance's normal balance?

A trial balance's normal balance is defined as the balance that each type of account typically holds on the books of an organization. In the context of accounting:

• Assets and expenses usually carry a debit balance. This means they are increased with a debit entry and decreased with a credit entry.

• On the other hand, liabilities and equity are expected to have a credit balance, reflecting that they are increased with a credit entry and decreased with a debit entry.

Therefore, in order to achieve a balanced set of accounts under the double-entry accounting system, the trial balance reflects this distinction, where it shows debit balances for assets and expenses, and credit balances for liabilities and equity. This is essential for ensuring that the accounting equation (Assets = Liabilities + Equity) remains in equilibrium.

Other choices may suggest incorrect conventions regarding account balances that do not align with established accounting principles, which could lead to misunderstandings in financial reporting or data analysis within the trial balance framework.