Accounts Payable, Taxes Payable, and Notes Payable:
A)increase on the debit side, decrease on the credit side and are assets.
B)decrease on the debit side, increase on the credit side and are liabilities.
C)increase on the debit side, decrease on the credit side and are expenses.
D)decrease on the debit side, increase on the credit side and are revenues.

Question

Quizplus · Accepted Answer

Accounts Payable, Taxes Payable, and Notes Payable are all examples of liabilities. Liabilities increase on the credit side and decrease on the debit side, which is the opposite of assets. Therefore, choice B is the correct answer.