If an Account Was Incorrectly Debited for $300 Instead of Correctly

question 76

True/False

If an account was incorrectly debited for $300 instead of correctly credited for $300, the account is out of balance by $300.

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Definitions:

Cash Disbursements

The process of paying out money from a company or individual's cash account, usually including expenses, debt payments, and other financial transactions.

Financing Required

The total amount of money needed to start or expand an enterprise, often reflecting external funding needs to cover projected deficits or investments.

Cash Receipts

Monies received by a business during a specified period from transactions, including sales and services.

Credit Sales

Transactions where goods or services are sold and payment is deferred to a future date.