Favorable balance of cash book implies that
Correct answer: B. Debit balance of cash book
- A. Credit balance of cash book
- B. Debit balance of cash book
- C. Bank overdraft
- D. Adjusted balance of cash book
Explanation
A favorable cash book balance means the business has cash at bank rather than an overdraft. Cash is an asset and therefore normally has a debit balance in the cash book.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
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.
More Accounting Principles questions
Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
In the Bank reconciliation statement "Deposit in transit" is usually:
Unpresented checks also referred as____________?
Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
Bank reconciliation statement is prepared by____________?
A check returned by bank marked "NSF" means that: