Accounts Payable Is Increased with a Credit

question 109

True/False

Accounts payable is increased with a credit.

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Definitions:

Account Balance

The total amount of money in a financial account, calculated by adding all credits and subtracting all debits.

Credits

Accounting entries that increase liabilities or decrease assets, typically reflecting the sources of value in transactions.

Accounts Payable

Liabilities to creditors arising from purchases of goods, services, or loans, representing amounts a company owes and must pay in the near term.

Buildings

Structures such as offices, warehouses, and factories owned by a company for the purpose of conducting business operations.