Multiple choice

Which of the following is a liability of a firm?

  1. Debit balance of analytical Petty Cash Book

  2. Credit balance of Bank Pass book

  3. Debit balance of Bank column of Cash Book

  4. Credit balance of Bank column of Cash Book

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct Answer: Credit balance of Bank column of Cash Book means overdraft and thus, a liability.