In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $500. The cash account has a
A) $500 credit balance.
B) $900 debit balance.
C) $400 debit balance.
D) $400 credit balance.

Question

Quizplus · Accepted Answer

The cash account has a $400 debit balance because the total debits ($900) minus the total credits ($500) equals $400. In accounting, the cash account is an asset account, and increases are recorded as debits.

In the First Month of Operations, the Total of the Debit