Asked by Bryce Burns on Jul 18, 2024
Verified
For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.
Accounts Payable
Liabilities representing amounts owed by a company to suppliers for goods and services received but not yet paid for.
Credit Entries
Accounting entries that increase liabilities or equity or decrease assets, reflecting gains to a company's balance sheet.
- Understand the principle of debits and credits and how they affect account balances.
- Discriminate among the classifications of asset, liability, and equity accounts including their normal balances.
Verified Answer
FM
Fatima MuhammadJul 18, 2024
Final Answer :
False
Explanation :
The accounts payable account is used to track what the business owes to its vendors or suppliers. Transactions may include both debit and credit entries, as the business may make purchases on credit or pay off outstanding balances. Therefore, the accounts payable account is unlikely to have only credit entries for a month's transactions for a typical medium-sized business.
Learning Objectives
- Understand the principle of debits and credits and how they affect account balances.
- Discriminate among the classifications of asset, liability, and equity accounts including their normal balances.