APA FPC-Remote Question Answer
Which of the following general ledger accounts should normally maintain a credit balance?
Accounts Payable
Cash
Office Equipment
Prepaid Expenses
Comprehensive and Detailed Explanation:Acredit balancemeans an accountnormally holds a liability or revenue amount.
Accounts Payable (Option A)representsamounts owedto vendors, which is aliability accountandnormally has a credit balance.
Option B (Cash)is incorrect because cash is anasset accountandtypically has a debit balance.
Option C (Office Equipment)is incorrect because it is afixed assetand alsohas a debit balance.
Option D (Prepaid Expenses)is incorrect because prepaid expenses areassetsthat aredebited when paid.
TESTED 25 Feb 2026
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