A credit balance in which of the following accounts would indicate a likely error?
A) Sales revenue
B) Inventory
C) Share capital
D) Accounts payable

Question

Quizplus · Accepted Answer

Inventory is an asset account and should have a debit balance. A credit balance in the inventory account would suggest an error, as it indicates that there are negative assets, which is not typical for inventory management.

A Credit Balance in Which of the Following Accounts Would