The account "Cash" began with a zero balance and then had the following changes: increase of $280, decrease of $90, increase of $125 and a decrease of $40. The final balance is a:
A)debit balance of $275.
B)credit balance of $275.
C)debit balance of $405.
D)credit balance of $130.

Question

Quizplus · Accepted Answer

The final balance is calculated as follows: $0 + $280 - $90 + $125 - $40 = $275. Since "Cash" is an asset account, increases are recorded as debits and decreases as credits. Therefore, the final balance is a debit balance of $275.

The Account "Cash" Began with a Zero Balance and Then