All liability accounts have credit balances.The accounts receivable account is a liability account.Therefore,the accounts receivable account has a credit balance.Which of the following statements is correct with respect to the above argument?
A) The argument follows a logical and clear reasoning.
B) The argument is illogical.
C) The conclusion reached is clearly true.
D) The classification of accounts receivable is consistent with the observed classification of receivables.

Question

Quizplus · Accepted Answer

The argument follows a logical and clear reasoning. The first premise states that all liability accounts have credit balances. The second premise states that the accounts receivable account is a liability account. The conclusion follows logically from the two premises, as it states that the accounts receivable account must therefore have a credit balance.

All Liability Accounts Have Credit Balances