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:

Litigation

The process of taking legal action, including filing lawsuits to resolve disputes between parties.

Legal Error

A mistake in the application or interpretation of the law, which can be grounds for appealing a court decision.

Proceedings

A sequence of legal steps or actions taken to achieve a judicial decision.

Administrative Tribunal

An administrative tribunal is a government body responsible for resolving disputes, making decisions on regulatory or administrative matters, often in specialized areas such as labor, immigration, or social services.