On May 31, the Cash Account of Bottle's R US

question 129

Multiple Choice

On May 31, the Cash account of Bottle's R US had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

• A) A $0 balance.
• B) A $4,300 debit balance.
• C) A $4,300 credit balance.
• D) A $5,700 debit balance.
• E) A $5,700 credit balance.

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Definitions:

Profit Margin

Profit margin is a financial metric used to assess a company's profitability by comparing net income to sales, indicating how much of each dollar in revenue a company keeps as profit.

Anticipated Amount

The anticipated amount is an estimate of funds expected to be received or paid in the future.

External Financing

Funds raised from sources outside the company, including banks, investors, or public markets.

Operating Capacity

The maximum output or the level of service that a company can achieve with its current resources under normal conditions.