Which of the following statements about the Cash account are true?
A)Because most companies earn their fees in cash,the Cash account is categorized as revenue.
B)For any given transaction,Accounts Receivable and Cash can be used interchangeably because both accounts are measured in terms of cash.
C)The Cash account includes the value of any medium of exchange that a bank accepts for deposit.
D)Cash is the same thing as Retained Earnings.
E)Cash is a liability account.

Question

Quizplus · Accepted Answer

The Cash account includes all forms of currency and negotiable instruments that a bank accepts for deposit, including checks, money orders, and electronic transfers. Choices A, B, and E are incorrect because the Cash account is an asset account, not a revenue or liability account, and cannot be used interchangeably with Accounts Receivable. Choice D is incorrect because Retained Earnings represent the accumulated profits of a company, not the cash balance.

Which of the Following Statements About the Cash Account Are