A Company Has a $26,329 Debit Balance in the Payable

question 110

Multiple Choice

A company has a $26,329 debit 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 debit balance
• B)Not enough information provided, since normal account balances are different for each company.
• C)Payable accounts don't tend to run this high, so this is not a normal balance.
• D)It is ALWAYS normal for payable accounts to have a debit balance.

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Definitions:

Incurred

Refers to costs or expenses that have been recognized or accumulated through activities or transactions.

Collaborative Relationships

Partnerships or strategic alliances which aim to achieve mutual benefits through sharing resources, risks, and rewards.

Strategic Focus

The prioritization of resources and efforts towards the most important goals and objectives of an organization.

Cost Leadership

A strategic approach where a company aims to become the lowest cost producer in its industry to gain a competitive advantage.