PRC-1 · Chapter 9 · Question 52 of 100
Which of the following correctly describes a favorable balance on a bank statement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A credit balance
Explanation
From the bank's perspective, a customer's deposited funds are a liability owed to the customer. Therefore, a favorable positive balance is represented as a credit balance on the bank statement.
More Bank Reconciliations MCQs
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