Final answer:
The accounts payable account is categorized as a liability and it has a normal credit balance, which is aligned with the accounting equation where assets must equal liabilities plus net worth.
Step-by-step explanation:
The accounts payable account is a liability on a business's balance sheet and it normally has a credit balance. In accounting, liabilities represent debts or obligations that a business owes to others, and they increase on the credit side. A balance sheet is organized into a two-column T-account format, with assets on the left and liabilities plus net worth on the right. For example, when a company purchases goods or services on credit, the amount owed is recorded under accounts payable, increasing this liability account's credit balance. Understanding the nature of accounts payable is crucial, as it represents the future obligations of the business and has a direct impact on its cash flow and financial health.