Cash is normally a credit balance.
Understand the Problem
The question is asking whether cash is typically classified as a credit balance, which relates to accounting principles regarding the nature of cash accounts.
Answer
False.
The final answer is False.
Answer for screen readers
The final answer is False.
More Information
Cash is an asset account and normally has a debit balance. A credit balance in a cash account would indicate negative cash, which is atypical.
Tips
Confusing the normal balance of asset accounts with liability accounts can lead to errors.
Sources
- What is the normal balance of Cash? Debit or Credit? - Study.com - homework.study.com
- Rules of Debit and Credit: Left versus Right - Accountingverse - accountingverse.com
- Understanding normal balances : r/Accounting - Reddit - reddit.com
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