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

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Richmond

Business

14 July, 07:19

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

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Zachary Weiss · 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.