Is the cash account debited or credited when you receive $250 in cash?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the Tracking Assets and Sales Test with comprehensive flashcards and multiple choice questions. Understand each concept with clear hints and explanations. Ace your exam confidently!

Multiple Choice

Is the cash account debited or credited when you receive $250 in cash?

Explanation:
Receiving cash increases an asset, and assets have a normal debit balance. So when you get $250 in cash, you record a debit to the cash account for 250. The other side of the entry would be a credit to the related account (such as Sales Revenue for a cash sale, or Accounts Receivable if you’re collecting a prior receivable), but the cash account itself is increased with a debit.

Receiving cash increases an asset, and assets have a normal debit balance. So when you get $250 in cash, you record a debit to the cash account for 250. The other side of the entry would be a credit to the related account (such as Sales Revenue for a cash sale, or Accounts Receivable if you’re collecting a prior receivable), but the cash account itself is increased with a debit.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy