What type of account typically has a normal balance on the debit side?

The correct answer is assets, as these accounts typically carry a normal balance on the debit side. In accounting, the normal balance of an account refers to the side (debit or credit) that increases the account's value. For asset accounts, which include cash, inventory, accounts receivable, and property, the value increases when debits are recorded.

When a debit is made to an asset account, it signifies an increase in that asset. For example, if a business purchases equipment, the equipment account will be debited, reflecting an increase in assets. Conversely, a credit to an asset account would indicate a decrease, such as when depreciation is recorded or when an asset is sold.

This understanding is crucial for proper financial record-keeping and analysis, as it helps maintain the accounting equation: Assets = Liabilities + Equity. When assets are debited, it directly affects the equation by showing how resources controlled by the business have increased.