The correct answer is A. Credit balance of cash book.
A credit balance in a cash book is a favorable balance. This means that the total amount of cash receipts is greater than the total amount of cash payments. A credit balance in the cash book indicates that the business has more cash on hand than it owes to its creditors.
A debit balance in a cash book is an unfavorable balance. This means that the total amount of cash payments is greater than the total amount of cash receipts. A debit balance in the cash book indicates that the business owes more money to its creditors than it has cash on hand.
A bank overdraft is a loan that a bank makes to a customer when the customer’s checking account balance goes below zero. A bank overdraft is a type of short-term loan that is typically used to cover unexpected expenses.
The adjusted balance of a cash book is the balance that is obtained after adjusting the cash book for any errors or omissions. The adjusted balance of the cash book is the amount of cash that the business actually has on hand.
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