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 by debiting
D) all are true

Question

Quizplus · Accepted Answer

Cash is an asset and as such, it has a normal debit balance. Therefore, increasing cash requires a debit entry, making statement C true. Statement A is incorrect because cash can have an equal number of debit and credit entries if there are both cash inflows and outflows. Statement B is also incorrect because although its normal balance is a debit, there can still be instances where a credit balance exists, such as when the company receives more payments than what it owes.

Which Statement(s)concerning Cash Is (Are)true