When accounts payable increases, what type of entry is made in the accounting records?

When accounts payable increases, a credit entry is made in the accounting records. Accounts payable represents a liability for a company, reflecting money owed to suppliers or creditors for goods or services received but not yet paid for.

In accounting, liabilities are increased with credit entries. This fundamental principle aligns with the double-entry accounting system, where each transaction affects at least two accounts and maintains the accounting equation (Assets = Liabilities + Equity). Therefore, when a company incurs additional obligations, such as receiving goods on credit, the accounts payable account is credited to represent that increase in liability.

In this context, the other options do not appropriately represent the correct accounting treatment for an increase in accounts payable. A debit entry would imply a decrease in liabilities, which does not accurately reflect the increase in accounts payable. A combination of both debit and credit entries may apply to other transactions, such as a sale or purchase, but not specifically for the sole increase in accounts payable. Lastly, indicating that no entry is needed overlooks the necessity of recording the liability when it occurs.