A £200 credit balance brought down in the cash columns of a firm’s cash book means that…?
Select ONE answer:
- the firm has spent £200 more cash than it has received.
- the firm has £200 cash in hand.
- a mistake has been made in the recording of cash.
- someone has stolen £200 cash.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct – A credit balance brought down on the cash columns of a firm’s cash book would indicate that the firm has a negative amount of cash. As this is clearly not possible, a mistake must have been made.
- Not correct
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