Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 42 - No. 23)
If a business has a credit balance in its bank account, what does this mean?
The company has overspent and owes money to the bank.
The company has cash available.
The company is profitable.
The company's expenses are higher than their revenue.
Explanation
A credit balance in the cash book indicates more receipts or deposits than payments; the business has cash available.
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