If a company has overdrawn its bank balance then
A) its cash account will show a debit balance.
B) its cash account will show a credit balance.
C) the cash account debits will exceed the cash account credits.
D) it cannot be detected by observing the balance of the cash account.

Question

Quizplus · Accepted Answer

When a company overdraws its bank balance, it means the bank account has a negative balance, which is represented in the company's books as a credit balance in the cash account.

If a Company Has Overdrawn Its Bank Balance Then