The Classification and Normal Balance of the Accounts Payable Account

question 115

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) an asset with a debit balance
• D) an expense with a debit balance

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Definitions:

OTC Model

A model where securities are bought and sold via a dealer network as opposed to on a centralized exchange.

Allocate Costs

The process of assigning costs, often indirect, to different departments, projects, or activities based on benefits received or other equitable relationships.

Customer Service Failures

Instances where a business fails to meet the expected levels of service, leading to customer dissatisfaction.