A company has a ten million dollar debit balance in the payable accounts.Given this information,which of the following is a TRUE statement?
A)It is NOT normal for payable accounts to have a debit balance
B)Not enough information provided,since normal account balances are different for each company.
C)Payable accounts don't tend to run this high,so this is not a normal balance.
D)It is ALWAYS normal for payable accounts to have a debit balance.

Question

Quizplus · Accepted Answer

Accounts payable typically have a credit balance, so a debit balance is not normal and may indicate an error or unusual transaction.

A Company Has a Ten Million Dollar Debit Balance in the Payable