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

question 148

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

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Definitions:

Contra-Liability Account

An account on a company's balance sheet that reduces the amount of a liability, serving as a negative balance to that liability.

Straight-Line Amortization

A technique for distributing the expense of an intangible asset uniformly across its lifespan.

Interest Paid

The total amount of interest payments made by a borrower to lenders within a specific time frame.

Carrying Value

The book value of assets and liabilities, calculated as the original cost minus accumulated depreciation or amortization and impairment.