In the Second Month of Operations, the Total of the Debit

question 124

Multiple Choice

In the second month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The opening balance of the cash account was $200. The cash account has a

• A) $500 credit balance.
• B) $900 debit balance.
• C) $600 debit balance.
• D) $400 credit balance.

---

Definitions:

Arbitration

A form of alternative dispute resolution where an impartial third party, the arbitrator, makes a decision in a conflict that is binding on the parties involved.

Forum Selection Clause

A provision in a contract that specifies which court or jurisdiction will resolve any disputes that arise under the contract.

Franchise Agreement

A legal, binding contract between a franchisor and franchisee, outlining the terms and conditions for operating a franchised business.

Joint Venture

A collaborative agreement where several participants contribute their resources to fulfill a targeted objective.