If Cash Was Incorrectly Debited for $100 Instead of Correctly

question 192

True/False

If cash was incorrectly debited for $100 instead of correctly crediting it for $100, the cash account's balance will be overstated (too high).

---

Definitions:

Maintenance Requirements

The minimum equity amount that must be maintained in a margin account.

Margin Accounts

Brokerage accounts that allow investors to borrow money from the broker to buy securities, subject to maintenance requirements.

Primary Market

The primary market is where securities are created and sold for the first time, involving direct transactions between issuers and investors.

Security Issues

The process of offering new securities to the market, including initial public offerings (IPOs) and bond issuances.