Multiple Choice
In financial accounting, all of the following accounts have normal debit balances except:
2
views
2. Transaction Analysis
Journal Entries: Debits and Credits
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In journal entries, a credit to Cash will generally have what effect on the Cash account balance?
A
Decrease Cash
B
Have no effect on Cash because Cash is not a normal-balance account
C
Increase a liability and increase Cash
D
Increase Cash
Verified step by step guidance1
Understand that the Cash account is an asset account, and asset accounts normally have a debit balance.
Recall that in accounting, debits increase asset accounts, while credits decrease asset accounts.
Recognize that a credit to the Cash account means you are reducing the amount of cash on hand or in the bank.
Therefore, a credit entry to Cash will decrease the Cash account balance.
Summarize that the correct effect of a credit to Cash is to decrease the Cash account balance.
2:35mWatch next
Master Journal Entries: Debits and Credits with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Journal Entries: Debits and Credits practice set
Problem sets built by lead tutorsExpert video explanations