The classification and normal balance of the accounts payable account are a. revenue, credit balance b. asset, credit balance c. owner's equity, credit balance d. liability, credit balance

Question

Business

Kai Wilkinson

11 October, 05:08

The classification and normal balance of the accounts payable account are a. revenue, credit balance b. asset, credit balance c. owner's equity, credit balance d. liability, credit balance

+5

Answers (1)

Know the Answer?

Allan · Answer 1

d. liability, credit balance

Explanation:

Account payable represents the amount yet to be paid for the receipt of goods or delivery of service.

It is a present obligation from a past event for which future economic resources will flow from an entity.

As such, Accounts payable is a liability and liabilities usually have credit balances.

Hence the right option is d. liability, credit balance.