The Classification and Normal Balance of the Accounts Payable Account

question 7

Multiple Choice

The classification and normal balance of the accounts payable account is

• A) an asset with a credit balance
• B) a liability with a credit balance
• C) stockholders' equity with a credit balance
• D) revenue with a credit balance

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Definitions:

Revaluation

The process of adjusting the book value of an asset to reflect its current market value.

Intangible Assets

Assets that cannot be physically touched or seen but hold value, such as copyrights, trademarks, and patents.

Comprehensive Income

The total of all operating and financial events that affect the equity of a company, beyond just net income.

Unrealized Gains and Losses

Increases or decreases in the value of investments that have not yet been sold by the holder.