0
It could be possible for the cash account to have a negative balance. This could occur if they wrote a check out for more money than they have. This would not be a good situation for a company!
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Why is cash a credit in accounting?
Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.Cash = Current Asset = Debit Balance(GAAP)
Is a petty cash account an asset with a normal credit balance?
Petty Cash is an asset account with a normal Debit balance.
The cash account has a credit balance Which statement is true?
what are the choices?!
Is sales a credit or debit?
Sales is a revenue account and all revenues has credit balance as default balance so sales also has credit as default balance while cash or accounts receivable will be debited against it.
What does it mean when the bank account in the cash book has a credit balance?
That doesnt happen often, but its when you send a bad check. Because cash account is an asset and carry debit balance
Why is cash a credit in accounting?
Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.Cash = Current Asset = Debit Balance(GAAP)
Does a debit iincreasse a cash account?
Cash account has a debit as a normal balance so debit increases the cash account and credit reduces the cash account which is reverse of debit balance.
Is a petty cash account an asset with a normal credit balance?
Petty Cash is an asset account with a normal Debit balance.
The cash account has a credit balance Which statement is true?
what are the choices?!
Does a credit card balance in the fund balance account at the end of the year mean the fund has sufficient cash to pay its liabilities in a timely manner?
No. A credit balance in the fund balance accounts does not mean there is sufficient cash to pay liabilities in a timely manner. The assets are likely to include taxes receivable, and it is possible that the reported liabilities will exceed the cash balance
Is sales a credit or debit?
Sales is a revenue account and all revenues has credit balance as default balance so sales also has credit as default balance while cash or accounts receivable will be debited against it.
What does it mean when the bank account in the cash book has a credit balance?
That doesnt happen often, but its when you send a bad check. Because cash account is an asset and carry debit balance
Amount of cash overages for a period exceeds the amount of cash shortages the balance in the account cash short and over will be?
credit
What is meant by debit balance of cash book?
Cash Account is a real account and also the asset of company and assets have normally debit balance according to basic accounting rules.So debit balance of cash means we have positive amount in cash account and will be shown as asset in balance sheet.But banks also provide overdraft facilities as well in this case we have normally credit balance of cash which means that we have negative balance in cash account and so it is liability of company to clear bank overdraft and make cash balance debit again.
Why is it not possible to have a credit balance brought down in the cash column of a cash book?
Beacause its an asset and it's just impossible to have a credit cash balance bank could have a credit balance when bank overdraft is given. IF ANYONE HAS A BETTER ANSWER PLEASE EMAIL AT kaleytube@gmail.com
Why the ballance of the assets is always on debit side in T account?
Assets maintain a Debit balance and therefore any asset with a positive balance will be listed on the "debit" side of the account. The credit side of the T account for assets is used only to DECREASE that asset. For example Cash is an asset account and it's balance is listed on the Debit side, now your company spends "x" amount of dollars, that entry will be listed on the Credit side to decrease the cash account. If at anytime your Debit side of the asset is less than your Credit side it means that you have a LOSS. For example, you have $1,000 in your cash account and you record $1500 (credit) to the account. Your account will be listed as "OVERDRAWN" and will have a Credit Balance of $500, this of course is not acceptable. A company can never have a higher Credit balance than a Debit balance in their assets.
Is capital a debit or credit to an owners equity?
Capital is a Credit Balance account. To increase capital and therefore increase OE, you will Credit the account. Not DEBIT. You Debit Cash, Credit Capital.
