Multiple choice

The credit balance in the income and expenditure account indicates

  1. excess of cash receipts over cash payments

  2. excess of income over expenditure

  3. excess of expenditure over income

  4. excess of cash payments over cash receipts
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In an Income and Expenditure Account, the credit side represents income and the debit side represents expenditure. A credit balance means the total income is greater than the total expenditure, resulting in a surplus.

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