📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Credit Balance of the Bank in the company’s Cash Book

      is:
      A Asset Correct Answer Incorrect Answer
      B Liability Correct Answer Incorrect Answer
      C Capital Correct Answer Incorrect Answer
      D Revenue Correct Answer Incorrect Answer
      E Expense Correct Answer Incorrect Answer

      Solution

      The transactions in the cash book are recorded as follows: •     All cash receipts are recorded as a debit, •     all cash payments are recorded as a credit As such a credit balance in the cash book indicates the bank account has becomes negative and the company in effect has borrowed from the bank. It is therefore a liability for the company.

      Practice Next
      More The Management Basics Questions

      Relevant for Exams:

      ask-question