To determine the correct answer for this question, let's analyze what we know about the nature of revenues in accounting.
1. Debit and Credit Balances:
- In accounting, each type of account has a normal or natural balance. This balance indicates which side (debit or credit) increases the account and which side decreases it.
2. Revenues:
- Revenues are the earnings or income that a company generates from its normal business operations. For example, sales revenue is one of the common types of revenue.
3. Normal Balances:
- Revenues typically have a normal credit balance. This means that when revenues are recorded, they are credited, which increases the revenue account. On the other hand, debiting the revenue account would decrease it.
4. Decrease with a Debit:
- The question mentions that revenues decrease with a debit. This aligns with our understanding that a debit entry in a revenue account reduces the amount of revenue recorded.
Given this information:
- The natural balance of revenue accounts is a credit balance.
- The multiple-choice options are:
a.) zero
b.) credit
c.) debit
d.) negative
Since revenues have a natural credit balance and decrease with a debit, the correct answer is:
b.) credit
