Which of the following statements is TRUE?
Favorable bank balance as per the cash book will be less than the bank passbook balance when there are unpresented cheques for payment.
The correct answer is option 2. When there are unpresented cheques for payment, the cash book will show a higher balance than the bank passbook balance. This occurs because the cheques have been recorded in the cash book, but have not yet been processed or deducted from the passbook balance by the bank.
Important Questions from Basic accounting principles
______ is the cost of use of things or services for the purpose of generating revenue.
______ states that accounting report must belong to a common period and use common unit of measurement and format of reporting.
Which of the following accounting concept eliminates personal biasedness and helps in achieving results that are comparable?
Which of the following given statements are CORRECT?
Which of the following statements are FALSE?
