Which of the following accounts has a normal credit balance?

Accounts typically maintain a normal balance that reflects the nature of the account. In the case of Accounts Payable, this account represents obligations or debts that a company owes to its suppliers or vendors. When a company receives goods or services on credit, the amount owed increases the balance in Accounts Payable, which is classified as a liability.

Liabilities are accounts that normally have a credit balance because they reflect amounts owed. An increase in a liability results in a credit, while a decrease results in a debit. Thus, Accounts Payable correctly holds a normal credit balance.

Other choices reflect asset accounts (Cash, Accounts Receivable, Equipment), which normally carry a debit balance. Asset accounts increase with debits and decrease with credits, reflecting ownership rather than debt. Only liability accounts, like Accounts Payable, generally have a normal credit balance, confirming why this choice is correct.