Identify the statement below that is incorrect. A) The normal balance of accounts receivable is a debit. B) The normal balance of dividends is a debit. C) The normal balance of unearned revenues is a credit. D) The normal balance of an expense account is a credit. E) The normal balance of the common stock account is a credit.

D) The normal balance of an expense account is a credit.

Explanation:

We know that

The debit sections report assets and expenses side while sales, stockholder equity, and the liability side are reported in the credit section.

So as per the given options, the incorrect answer is D as expense account has a debit balance but the question it is given that the expense account has a credit balance that is totally wrong.

Answer: the normal balance of an expense account is credit!