A credit balance on a ledger account indicates a liability or a revenue. true or false?

True, a credit balance is the ending amount found on the right side of a general ledger account or subsidiary ledger account. A credit balance is normal and expected for the following general ledger and subsidiary ledger accounts: • Liability accounts; for example accounts payable. • Equity accounts; for example common stock. • Revenue accounts; for example sales revenue. • contra- assets accounts; accumulated depreciations. • contra-expense accounts; purchases returns and allowances.

A credit balance on a ledger account indicates a liability or a revenu IS true