Accounts Payable Has a Normal Balance of $1,100

question 47

Multiple Choice

Accounts Payable has a normal balance of $1,100. After paying to creditors $300, the balance in the account is:

• A) debit $800.
• B) debit $1,400.
• C) credit $800.
• D) credit $1,400.

---

Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money either on demand or at a set time, with the payee’s name mentioned on it.

Fraud in the Factum

A deception made during the act of signing a document, where the signer is misled about the nature of the document and what signing it entails.

Liable

Being legally responsible or obligated; for example, due to negligence or breach of contract.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith, for value, and without notice of any defects, and thus has certain legal protections.