Question

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

Answer 1

Answer:

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.