WAEC Accounting 2022 Paper

Concept:An asset is a resource owned by the business that gives future economic benefits.Explanation:A debit balance on a customer's account means the customer owes money to the business.This is called an account receivable, which is a current asset.A debit balance on the drawings account reduces capital, so it is not an asset.A credit balance on the capital account is owner's equity.A credit balance on a supplier's account is a liability because the business owes the supplier.Among the given items, only the debit balance on a customer's account is shown as an asset in the balance sheet.Answer:Option B — debit balance on a customer's account.