Exercise 245 For each of the following accounts indicate the type of account, the debit and credit effects and the normal account balance. Example 0. Cash a. Asset account b. Debit increases, credit decreases C. Normal balance - debit Type of Account Liability Debit Effect Decreases Credit Effect Normal Account Balance Increases Credit 1. Accounts Payable 2. Accounts Receivable Asset Increases Decreases Debit 3. Common Stock Liability Decreases Increases Credit 4. Dividends Decreases Increases Credit 6. Insurance Expense Liability Increases Decreases Debit v 7. Notes Payable Liability Decreases Increases Credit 8. Equipment Asset Increases Decreases Debit