In a trial balance, which of the following accounts would typically have a credi

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Question: In a trial balance, which of the following accounts would typically have a credit balance?

Options:

Correct Answer: Accounts Payable

Solution:

Accounts Payable typically has a credit balance, as it represents amounts owed to creditors.

In a trial balance, which of the following accounts would typically have a credit balance?

In a trial balance, which of the following accounts would typically have a credit balance?

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, equity, and revenue 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, represent money owed to others.
Step 5: Conclude that since Accounts Payable is a liability, it will typically have a credit balance.

Trial Balance – A trial balance is a statement that lists all the balances of the general ledger accounts to ensure that total debits equal total credits.
Credit Balance Accounts – Accounts that typically have a credit balance include liabilities, equity, and revenue accounts.