In this discussion, you need to define the account, state the section of the classified balance sheet the account is found, and what is the normal balance. I have defined three accounts for you below as an example.

Examples

Franchises: These are assets owned by the Company. The Franchise account can be used to record the fees paid for the right to operate the business (for example, the cost paid to McDonalds to open your store). Since the right can't be touched, Franchises are classified as an Intangible Asset. The normal balance is Debit.

Accrued Liabilities: The Accrued Liability account is used to record the expenses that have occurred but have not yet been billed by the vendor. This account is used during the month-end adjustment process in support of the matching principal. The account is a current liability with a normal balance of Credit.

• Temporary Investments
• Accounts Payable