PRC-1 · Chapter 9 · Question 17 of 100
A favorable balance as per the cash book means:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The business has a positive bank balance (an asset).
Explanation
A favorable cash book balance is a debit balance, indicating the business has cash deposited in the bank (an asset). This normally translates to a favorable credit balance on the bank statement.
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