The normal balance of the Accounts Payable account is a ________ because it is a(n) ________ account.
A) credit; liability
B) debit; stockholders' equity
C) credit; expense
D) debit; asset

Question

Quizplus · Accepted Answer

The normal balance of the Accounts Payable account is a credit because it is a liability account. This means that the balance represents the amount that the company owes to its suppliers for goods or services that have been purchased on credit. As such, an increase in the Accounts Payable balance represents an increase in the company's liabilities, and this is reflected by a credit entry.

The Normal Balance of the Accounts Payable Account Is a ________