When computing the normal balance of an account:
A) salaries expense should have a credit balance.
B) accounts payable should have a credit balance.
C) equipment can have either a credit or debit balance.
D) notes payable can have either a credit or debit balance.

Question

Quizplus · Accepted Answer

Accounts payable is a liability account and therefore has a normal credit balance. Salaries expense (A) is an expense account and has a normal debit balance. Equipment (C) is an asset account and has a normal debit balance. Notes payable (D) is a liability account and has a normal credit balance.

When Computing the Normal Balance of an Account