A credit balance in which of the following accounts would likely indicate an error?

A) Fees Earned
B) Salary Expense
C) Janet James, Capital
D) Accounts Payable

Question

A credit balance in which of the following accounts would likely indicate an error?A)  Fees EarnedB)  Salary ExpenseC)  Janet James, CapitalD)  Accounts Payable

20Rebecca Starns · Accepted Answer

Final Answer : B, Explanation :  A credit balance in Salary Expense would likely indicate an error because expense accounts typically have a debit balance. Expenses increase with debits and decrease with credits, so a credit balance would be unusual and may suggest a mistake in recording transactions.

A credit balance in which of the following accounts would likely indicate an error?

A) Fees Earned
B) Salary Expense
C) Janet James, Capital
D) Accounts Payable

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