A company has $9,000 on deposit in Bank A and is overdrawn $4,000 with Bank C; the company should report a cash balance of:

Question

Quizplus · Accepted Answer

The company should report the cash balance as the difference between the amount on deposit and the amount overdrawn.

Cash balance = Amount on deposit - Amount overdrawn
Cash balance = $9,000 - $4,000
Cash balance = $5,000

Therefore, the correct choice is (C) $9,000.

A Company Has $9,000 on Deposit in Bank a and Is