Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 40)
What does it mean when the total debits are less than the total credits in the cash book?
The company has more cash than it owes.
The company has an overdraft.
The company has made a loss.
The company's cash balance is zero.
Explanation
A credit balance in a bank account often indicates that the company has overspent.
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