All Liability Accounts Have Credit Balances

question 18

Multiple Choice

All liability accounts have credit balances.The accounts receivable account is a liability account .Therefore,the accounts receivable account has a credit balance.Which of the following statement is correct with respect to the above argument?

• A) The argument follows a logical and clear reasoning
• B) The argument is illogical
• C) The conclusion reached is clearly true
• D) The classification of accounts receivable is consistent with the observed classification of receivables