In Drawing Up a Trial Balance,the Following Figures Are Shown

question 2

Multiple Choice

In drawing up a Trial Balance,the following figures are shown:
$$\begin{array} { | l | l | l | } \hline \text { Accaunt } & \text { Dr } & \text { Cr } \\\hline \text { Bank } & & 1,800 \\\hline \text { Cash } & & 200\\\hline\end{array}$$
What can be deduced from the extract above?

• A) There is a total of £2,000 in the business - £1,800 at the bank, and £200 in the cash tin
• B) There is an overdraft of £1,800 at the bank and the cash tin is owed £200
• C) The bank is showing as overdrawn by £1,800. The cash account must be incorrect
• D) The bank balance is £1,800 "in credit" meaning there is £1,800 at the bank. The cash tin is owed £200

---

Definitions:

Average Cost

The total cost of production divided by the total units produced, also known as cost per unit.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service; it's crucial for determining the optimal level of production.

Demand Schedule

A demand schedule represents a table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Maximum Profit

The highest possible financial gain that a business can achieve from its operations, given the current conditions.