If debit side of a bank account is greater than credit side it indicates which of the following?
Correct answer: A. Cash at bank
- A. Cash at bank
- B. Bank understatement
- C. Bank overdraft
- D. Balance overstatementCredit & Lending
Explanation
A debit balance in a bank account means deposits and other debit entries exceed withdrawals and credits, leaving cash available at the bank. An overdraft produces a credit balance, so option c is the opposite situation.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
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
_________ will be credited if goods are given as charity?
Which of the following is known as the base for preparing trial balance?
If debit balance is greater than creadit balance then the account blance will be__________?
If credit side of a bank account is greater than the debit side, it indicates which of the following?
An account records the ___________ in the balance of an item?
Transferring entries from journal to ledger account is commonly known as____________?