In accounting, which type of account does not normally have a debit balance?

In accounting, liability accounts do not normally have a debit balance because they represent obligations that a company owes to external parties. When a liability is created, it is recorded as a credit, reflecting an increase in the company's obligations. Therefore, the standard balance for liability accounts is a credit balance. Examples of liability accounts include accounts payable, notes payable, and accrued expenses, all of which signify money the company is required to pay in the future.

On the other hand, asset accounts, expense accounts, and dividend accounts typically carry a debit balance. Assets reflect resources owned by a company, expenses represent costs incurred in operations, and dividends indicate distributions to shareholders, all of which are classified as debits in the accounting system. Understanding the normal balance for different accounts is crucial for accurate financial reporting and analysis.