Debit balance as per bank pass book mean_____________?
Correct answer: B. Bank Overdraft
- A. Surplus cash
- B. Bank Overdraft
- C. Terms deposits with bank
- D. None of theseOpen Savings Account
Explanation
A debit balance in the bank's pass book means the bank has debited the customer's account because withdrawals exceed the available balance. From the customer's perspective, this is a bank overdraft.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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