A Company Has an $11,263 Credit Balance in the Payable

question 33

Multiple Choice

A company has an $11,263 credit balance in the payable accounts. Given this information, which of the following is a TRUE statement?

• A)It is NOT normal for payable accounts to have a credit balance.
• B)Not enough information provided, since normal account balances are different for each company.
• C)It is ALWAYS normal for payable accounts to have a credit balance.
• D)Payable accounts shouldn't be this high, so this is not a normal balance.

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Definitions:

Retail Life Cycle

The progression of stages a retail business goes through from introduction to growth, maturity, and decline.

Growth And Decline

Refers to the phases of the business cycle or product life cycle where an entity or product experiences expansion in business activity or market share, and contraction or reduction respectively.

Retail Outlets

Physical or online stores where goods are sold directly to consumers.

Automated Stores

Retail outlets that operate automatically without the need for human staff, relying on technology like vending machines and kiosks for customer transactions.