Ask Question
17 August, 08:25

In the first month of operations, the total of the debit entries to the Cash account amounted to $5600 and the total of the credit entries to the Cash account amounted to $3200. The Cash account has a

a. $2400 debit balance.

b. $5600 debit balance.

c. $3200 credit balance.

d. $8800 credit balance

+4
Answers (1)
  1. 17 August, 09:56
    0
    a. $2400 debit balance.

    Explanation:

    Cash is an asset (a resources owned/controlled by an entity as a result of a past event, for which future benefits will be enjoyed by the company). As such, like other assets, cash normally has a debit balance.

    The debits to cash represents the inflow of cash while the credit entries represents the outflows from the cash account.

    Account balance = $5600 - $3200

    = $2400

    The debits are more than the credit hence net balance is a debit.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the first month of operations, the total of the debit entries to the Cash account amounted to $5600 and the total of the credit entries ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers