If a Company Has Overdrawn Its Bank Balance, Then

question 175

Multiple Choice

If a company has overdrawn its bank balance, then

• A)its Cash account will show a debit balance.
• B)its Cash account will show a credit balance.
• C)the Cash account debits will exceed the cash account credits.
• D)it cannot be detected by observing the balance of the Cash account.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Fixed

Pertains to expenses that remain constant for a given period regardless of the level of production or business activity.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Estimated

An approximation or informed guess of a value, quantity, or outcome based on available data.