If only one liability account has a negative sign, it is possible that the liability account has a debit balance. For example, if the account Interest Payable had a credit balance of $600, and subsequently a payment of $605 was recorded in the account, the account Interest Payable will have a debit balance of $5. If a balance sheet is prepared at that point, it will list Accounts Payable with a negative balance of $5 (and the other liability amounts will be positive).
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