10 Questions
What is the characteristic of a positive bank balance of a business?
It has a credit opening and closing balance
What is the typical balance of a positive bank balance?
Credit balance
What does a positive bank balance indicate about a business?
It has more money in the bank than it owes
What is the impact of a positive bank balance on a business's financial statement?
It increases the business's assets
What is the relationship between a positive bank balance and a business's cash flow?
A positive bank balance indicates a healthy cash flow
What is the nature of a positive bank balance's opening and closing balance?
Credit
A positive bank balance will have a what type of opening balance?
Credit balance
Which of the following is a characteristic of a positive bank balance?
Credit closing balance
What is the effect of a positive bank balance on a business's financial records?
Increases assets
What is the implication of a positive bank balance for a business?
The business has surplus funds
Test your understanding of accounting principles, specifically the relationship between bank balance and credit opening/closing balance. Identify whether a true or false statement about a business's financial records is accurate.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
