In a trial balance, which of the following accounts typically has a credit balance?
Practice Questions
1 question
Q1
In a trial balance, which of the following accounts typically has a credit balance?
Accounts Payable
Cash
Inventory
Accounts Receivable
Accounts Payable typically has a credit balance, as it represents amounts owed to creditors.
Questions & Step-by-step Solutions
1 item
Q
Q: In a trial balance, which of the following accounts typically has a credit balance?
Solution: Accounts Payable typically has a credit balance, as it represents amounts owed to creditors.
Steps: 5
Step 1: Understand what a trial balance is. A trial balance is a list of all the accounts in the accounting system and their balances.
Step 2: Know the difference between debit and credit balances. Assets and expenses usually have debit balances, while liabilities and equity typically have credit balances.
Step 3: Identify the type of account in question. Accounts Payable is a liability account.
Step 4: Remember that liability accounts, like Accounts Payable, usually have a credit balance because they represent money owed to others.
Step 5: Conclude that Accounts Payable typically has a credit balance.
