On June 1, 2014, Alma Inc. reported a cash balance of €12,000. During June, Alma made deposits of €3,000 and made disbursements totalling €16,000. What is the cash balance at the end of June?

Question

Quizplus · Accepted Answer

Beginning balance = €12,000
Deposits = €3,000
Disbursements = -€16,000
Ending balance = (Beginning balance + Deposits + Disbursements) = €12,000 + €3,000 - €16,000 = -€1,000
A negative balance indicates a credit balance, which means Alma has more cash than it owes. Therefore, the answer is €1,000 credit balance.