Given the following T-Account information, what is the balance in accounts payable? Accounts Payable 212

A)$335 debit balance
B)$625 debit balance
C)$335 credit balance
D)$960 credit balance

Question

Given the following T-Account information, what is the balance in accounts payable? Accounts Payable 212

A)$335 debit balance 
B)$625 debit balance 
C)$335 credit balance 
D)$960 credit balance

Quizplus · Accepted Answer

From the given T-Account information, we can see that only the "Accounts Payable" account has a balance provided, which is 212. There is no information provided about any credits or debits made to this account, so we cannot assume any. Therefore, the balance in the "Accounts Payable" account is simply the balance provided, which is 212. However, since the question asks for the balance in terms of credit or debit, we need to determine whether this balance is a credit or debit balance. In accounting, accounts payable is a liability account, which has a normal credit balance, meaning that if there are no debit transactions recorded, the balance will be a credit balance. Therefore, the correct answer is C, which says the balance is a $335 credit balance (since 212 is a credit balance and we need to convert it to a dollar amount).

Given the Following T-Account Information, What Is the Balance in Accounts