Which statement(s) concerning cash is (are) true?
A) cash will always have more debits than credits
B) cash will never have a credit balance
C) cash is increased with a debit
D) all are true

Question

Which statement(s) concerning cash is (are) true?
A) cash will always have more debits than credits
B) cash will never have a credit balance
C) cash is increased with a debit
D) all are true
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Quizplus · Accepted Answer

Cash is considered an asset, and assets are increased with debits. Therefore, cash is increased with a debit. Option A is false because sometimes there may be credits to cash, such as when a company receives a refund or earns interest. Option B is also false because it is possible for cash to have a credit balance if the company has overpaid a bill or received more cash than it owes in liabilities.

Which Statement(s) Concerning Cash Is (Are) True