Twin Cities Academy High SchoolMATH 100

what is Normal Balance and who makes Accounting Principles in financial accounting?

 

Answer:

Normal Account Balance.

Normal account balance is the expected debit or credit balance in a specific account in the general ledger. Debit balances are common in asset and expense accounts, for example. Credit balances are common in revenue, liability, and stockholders' equity accounts.
The expected debit or credit balance in a specified account is referred to as the normal balance in the double-entry bookkeeping method.

who makes Accounting Principles in financial accounting?

Accounting principles are the rules and guidelines that businesses must adhere to when reporting financial information.
The Financial Accounting Standards Board (FASB) in the United States publishes Generally Accepted Accounting Principles (GAAP) (GAAP).

GAAP is mandatory for all publicly traded companies in the United States, and it is also followed by non-publicly traded companies.
The International Accounting Standards Board (IASB) publishes International Financial Reporting Standards on a global scale (IFRS).
The FASB and the IASB collaborate on occasion to issue joint standards on hot-button issues, but the United States has no plans to adopt IFRS in the near future.

References.

Wanjala, K., Kalio, A. M., & Kiprop, S. A Pooled Mean Group Analysis on the Determinants of Current Account Balance in the East Africa Community.

Baker, C. R. (2017). The influence of accounting theory on the FASB conceptual framework. Accounting Historians Journal, 44(2), 109-124.