Answered

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Which of the following describes the state of an account when an overpayment has been made and a refund is due?

A. Overdraft
B. Aging of accounts
C. Skip trace
D. Credit balance

Sagot :

GinnyAnsweridn

Final answer:

A credit balance in an account indicates an overpayment and a need for a refund to the account holder.


Explanation:

Credit balance describes the state of an account when an overpayment has been made and a refund is owed to the account holder. In this situation, the account shows a positive balance due to the excess payment made.

When a credit balance exists, it indicates that the account holder has paid more than the required amount, leading to a surplus that needs to be returned to them.

For financial clarity and proper accounting treatment, the credit balance should be refunded to the account holder promptly to reconcile the overpayment.


Learn more about Accounting here:

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