The classification and normal balance of the accounts payable account is
A) an asset with a credit balance
B) a liability with a credit balance
C) stockholders' equity with a credit balance
D) revenue with a credit balance

Question

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Accounts payable is a liability account as it represents amounts owed by the business to its suppliers or vendors. The normal balance of a liability account is a credit balance, meaning that an increase in the account is recorded as a credit and a decrease is recorded as a debit.

The Classification and Normal Balance of the Accounts Payable Account