3)Mandy operates a trading business. Her business does not have liabilities. In the trial balance of her business, 答案及選項: A. only the capital account would have a credit balance. B. office equipment would not be shown. C. There would be an bank overdraft D. there would be no trade payables.
Question
3)Mandy operates a trading business. Her business does not have liabilities. In the trial balance of her business, 答案及選項: A. only the capital account would have a credit balance. B. office equipment would not be shown. C. There would be an bank overdraft D. there would be no trade payables.
Solution
The correct answer is A. Only the capital account would have a credit balance.
Here's why:
A. Only the capital account would have a credit balance - This is correct. In the absence of liabilities, the only credit balance in the trial balance would be the capital account. This represents the owner's equity in the business.
B. Office equipment would not be shown - This is incorrect. Office equipment is an asset and would be shown on the debit side of the trial balance.
C. There would be a bank overdraft - This is incorrect. A bank overdraft is a liability. Since the business has no liabilities, there would be no bank overdraft.
D. There would be no trade payables - This is incorrect. Trade payables are a type of liability. Since the business has no liabilities, there would be no trade payables. However, the absence of trade payables does not mean that they would not be shown in the trial balance. They would be shown with a zero balance.
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