The Classification and Normal Balance of the Accounts Payable Account

question 195

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) owner's equity with a credit balance
• D) revenue with a credit balance

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Definitions:

Downward-Sloping Demand

A concept in economics that indicates demand for a good or service decreases as its price increases, assuming all other factors remain constant.

Output

The amount of goods or services produced by a company, industry, or economic system.

Price Searchers

Price searchers are businesses or sellers who determine the sale price of their products or services based on market conditions, rather than fixed prices.

Price Leaders

Price leaders are companies that dominate their sector and can influence the market price of goods or services by setting a price others follow.