A Company Has a Ten Million Dollar Credit Balance in the Payable

question 89

Multiple Choice

A company has a ten million dollar 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:

Hydrogen Bond

An insubstantial attachment between two molecules produced by the electrostatic allure between a proton of one molecule and an electronegative atom of the other.

Ions

Atoms or molecules that have lost or gained one or more electrons, thus acquiring an electric charge.

Respective Charges

The specific electrical charges on particles or objects, usually defined as positive or negative, which determine their electromagnetic interactions.

Solvent

A substance, typically a liquid, capable of dissolving other substances to form a solution.