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.
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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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