What is the normal balance of the Accounts Payable account?

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Multiple Choice

What is the normal balance of the Accounts Payable account?

Explanation:
The normal balance of a liability account is on the credit side. Accounts Payable shows what you owe to suppliers. When you incur a liability by buying on credit, you credit Accounts Payable; when you pay it, you debit Accounts Payable to reduce it and credit Cash. Because it’s a liability, its normal balance is a credit. Debiting this account would generally only occur to reduce or clear the liability, not as the standard balance.

The normal balance of a liability account is on the credit side. Accounts Payable shows what you owe to suppliers. When you incur a liability by buying on credit, you credit Accounts Payable; when you pay it, you debit Accounts Payable to reduce it and credit Cash. Because it’s a liability, its normal balance is a credit. Debiting this account would generally only occur to reduce or clear the liability, not as the standard balance.

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