What is the normal balance of the Cash account?

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 $9.99Unlock all

Prepare for the YouScience Accounting 1 Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Elevate your readiness for your exam!

Multiple Choice

What is the normal balance of the Cash account?

Explanation:
Normal balance is the side that increases an account. Cash is an asset, and asset accounts have a debit normal balance. So increases to cash are recorded as debits, while decreases are credits. That makes the Cash account’s normal balance a debit. If cash goes up, you debit it; if cash goes down, you credit it. The other terms describe account types, not the balance side, and revenue, for example, typically has a credit balance.

Normal balance is the side that increases an account. Cash is an asset, and asset accounts have a debit normal balance. So increases to cash are recorded as debits, while decreases are credits. That makes the Cash account’s normal balance a debit. If cash goes up, you debit it; if cash goes down, you credit it. The other terms describe account types, not the balance side, and revenue, for example, typically has a credit balance.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy