Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 17)
Which of the following is true about a debit balance in a bank account?
The business has more cash than it owes to others.
The business has spent more money than it has.
It represents an overdraft.
The business has a positive cash flow.
Explanation
A debit balance indicates the company has a positive amount in its bank account, showing more assets than liabilities.
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