PRC-1 · Chapter 3 · Question 23 of 100
When extracting a trial balance, which of the following accounts will typically present a credit balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Bank Overdraft
Explanation
A bank overdraft represents an amount owed to the bank, making it a liability. Liabilities carry normal credit balances.
More Ledgers and Trial Balance MCQs
- Q25After extracting a trial balance, the accountant of 'Dynamic Corp' notices the debit column totals Rs. 500,000 and the credit column…
- Q26What is the correct double-entry sequence to formally transfer a net profit of Rs. 250,000 to the owner's equity at year-end?
- Q27Which of the following lists represents the correct sequential order of the fundamental accounting cycle?
- Q28When posting data from the Cash Book, how are individual payments made to credit suppliers processed in a manual ledger system?
- Q29The 'Payables Ledger' is also commonly referred to by which alternative name in accounting terminology?