Which column of a cash book will not have credit balance___________?
Correct answer: C. Cash column
- A. Bank column
- B. Discount column
- C. Cash column
- D. None
Explanation
The cash column cannot show a credit balance because cash cannot be paid out beyond the amount available. The bank column may show a credit balance when there is a bank overdraft, while discount columns do not represent cash balances.
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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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