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)Both A and B are true statements
E)Both B and C are true statements

Question

Quizplus · Accepted Answer

The Cash account includes any medium of exchange that a bank accepts for deposit, including cash, checks, and electronic transfers. Option A is incorrect because the Cash account only includes cash received, not all types of revenue. Option B is also incorrect because Accounts Receivable represents money owed to the company and is not the same as cash on hand.

Which of the Following Statements About the Cash Account Are