The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250, increase of $600, decrease of $225, and an increase of $375. The final balance is a:
A)credit balance of $1,000.
B)debit balance of $1,000.
C)credit balance of $1,450.
D)debit balance of $1,450.

Question

Quizplus · Accepted Answer

Accounts Payable is a liability account, and increases in liability accounts are recorded as credits. The account increased by $250, $600, and $375, and decreased by $225. The net change is an increase of $1,000 ($250 + $600 + $375 - $225), resulting in a credit balance of $1,000.

The Account "Accounts Payable" Began with a Zero Balance and Then