A debit balance on a bank account in the cash book means the business
Answer and explanation
Correct answer: D. has money in the bank
- Step 1: In the business's own books, a debit balance on the bank account is an asset. Answer: has money in the bank. Why not the others: is overdrawn: An overdraft is a credit balance in the cash book. owes money to suppliers: That is shown on the creditors account. has unpaid wages: That is an accrued expense.
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More Accounting concepts and double entry questions
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