Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 18)
A company has a debit balance in its cash book. What does this indicate?
The business has overspent
The business is in debt.
The business has cash available.
The business owes more money to suppliers.
Explanation
A debit balance in a cash book signifies that the company has more cash inflows than outflows, and the company has cash to use.
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