Asked by Melina Collins on Jun 20, 2024

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The classification and normal balance of the accounts payable account are

A) asset, credit balance
B) liability, credit balance
C) owner's equity, credit balance
D) revenue, credit balance

Classification

The systematic arrangement of business transactions or accounts into categories for reporting and analysis purposes.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting rules.

Accounts Payable

Liabilities or amounts owed by a business to its suppliers for goods and services received but not yet paid for.

  • Discern and organize assorted categories of accounts (assets, liabilities, owner's equity, expenses, revenues).
  • Identify the standard balance orientation (debit or credit) across different types of accounts.
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CM
Collin MeierJun 21, 2024
Final Answer :
B
Explanation :
Accounts payable is a liability account, as it represents money owed to creditors. As a liability account, it has a normal balance of a credit. Option A is incorrect because asset accounts have a normal debit balance. Option C is incorrect because owner's equity accounts have a normal credit balance. Option D is incorrect because revenue accounts have a normal credit balance.