Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 5 - No. 26)

If a business overdraws its bank account, which of the following is true?
The bank account has a debit balance.
The bank account has a credit balance.
Cash in hand is increased.
The company has more cash than assets.

Explanation

An overdrawn bank account has a credit balance.

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