22 B 22. 23. 23 Paragraph In double entry accounting: A. B. C. D. E. Styles With respect to balance sheet accounts: asset accounts normally have a debit balance, liability and owners' equity accounts normally have a credit balance. With respect to profit and loss accounts: revenue accounts have a credit balance, expense accounts have a debit balance. For every set of debit entries, there must be a set of credit entries with the same monetary value. Where there is a cash inflow we debit the cash account. For a cash outflow, we credit the cash account. All of the above statements are true. For the current financial year a hotel had $350,000 in its retained earnings account at the beginning of the year. During the year it earned $80,000 in profit and paid $32,000 in dividends to its owners. The balance sheet at the end of the current financial year should reflect a retained earnings balance of: A. $430,000. ABCDE B. $318,000. C. $398,000. D. $48,000. E. $80,000. 24. 74 Which of the following normally have a credit balance? Expenses and assets ABCDE A. Assets and revenue B. C. Prepaid expenses and revenues D. E. Liabilities and owner's equity None of the above.