State BPA Fundamental Accounting Practice Exam

What is the result of posting a $2500 credit to an asset account with a $4700 debit balance?

1. A zero balance

2. A credit balance of $2200

3. A debit balance of $2200

4. An increase in the debit balance

The correct answer is: A debit balance of $2200

When a $2500 credit is posted to an asset account that already has a $4700 debit balance, it affects the overall balance of that account. In accounting, assets have a normal debit balance. To calculate the new balance, you subtract the credit amount from the existing debit balance. Starting with the $4700 debit, posting a $2500 credit reduces this balance: $4700 (debit) - $2500 (credit) = $2200 (debit) This calculation indicates that the account will still have a debit balance after the transaction, specifically $2200. This outcome aligns with the understanding that credits diminish debit balances in asset accounts. Hence, the result of posting the credit leads to a remaining debit balance of $2200 in the asset account.