What normally characterizes the balances in the ledger accounts of the double-entry bookkeeping system?

In a double-entry bookkeeping system, each transaction affects at least two accounts, maintaining the accounting equation: Assets = Liabilities + Equity. This system ensures that the debits and credits remain balanced, which is essential for accurate financial reporting.

The correct option highlights that the balances in the ledger accounts for assets and expenses typically carry debit balances. Assets represent things that the business owns or controls, while expenses represent the costs incurred in the process of generating revenue. In the double-entry system, increases in assets and expenses are recorded as debits, leading to their accounts having debit balances. This reflects the foundational concept that the company’s resources (assets) and its costs (expenses) are initially increased through debits.

This understanding is pivotal to recognizing the basic structure of financial statements, where assets and expenses contribute to a comprehensive view of an entity's financial health. Balancing the accounts involves ensuring that every debit has a corresponding credit, which helps maintain accurate records for effective financial management.