Questions: Which of the following statements is correct? Salaries Payable decreases with a credit entry. Accounts Payable increases with a debit entry. Accounts Payable increases with a credit entry. Salaries Payable increases with a debit entry.

Which of the following statements is correct?
Salaries Payable decreases with a credit entry.
Accounts Payable increases with a debit entry.
Accounts Payable increases with a credit entry.
Salaries Payable increases with a debit entry.
Transcript text: Which of the following statements is correct? Salaries Payable decreases with a credit entry. Accounts Payable increases with a debit entry. Accounts Payable increases with a credit entry. Salaries Payable increases with a debit entry.
failed

Solution

failed
failed

The answer is: Accounts Payable increases with a credit entry.

Explanation for each option:

  1. Salaries Payable decreases with a credit entry.
    This statement is incorrect. Salaries Payable is a liability account, and liabilities decrease with a debit entry, not a credit entry.

  2. Accounts Payable increases with a debit entry.
    This statement is incorrect. Accounts Payable is a liability account, and liabilities increase with a credit entry, not a debit entry.

  3. Accounts Payable increases with a credit entry.
    This statement is correct. Accounts Payable is a liability account, and liabilities increase with a credit entry.

  4. Salaries Payable increases with a debit entry.
    This statement is incorrect. Salaries Payable, like other liability accounts, increases with a credit entry, not a debit entry.

Was this solution helpful?
failed
Unhelpful
failed
Helpful