QuestionJuly 16, 2025

Which statement(s)concerning cash is (are) true? a. cash is increased with a debit b. cash will always have more debits than credits c. cash will never have a credit balance d. all are true

Which statement(s)concerning cash is (are) true? a. cash is increased with a debit b. cash will always have more debits than credits c. cash will never have a credit balance d. all are true
Which statement(s)concerning cash is (are) true?
a. cash is increased with a debit
b. cash will always have more debits than credits
c. cash will never have a credit balance
d. all are true

Solution
4.6(221 votes)

Answer

Statements a and c are true. Explanation 1. Analyze statement a Cash is an asset account, increased by debits. Statement a is true. 2. Analyze statement b Cash can have more credits than debits if cash payments exceed receipts. Statement b is false. 3. Analyze statement c Cash cannot have a credit balance as it represents available funds. Statement c is true. 4. Evaluate statement d Not all statements are true; only a and c are true. Statement d is false.

Explanation

1. Analyze statement a<br /> Cash is an asset account, increased by debits. Statement a is true.<br />2. Analyze statement b<br /> Cash can have more credits than debits if cash payments exceed receipts. Statement b is false.<br />3. Analyze statement c<br /> Cash cannot have a credit balance as it represents available funds. Statement c is true.<br />4. Evaluate statement d<br /> Not all statements are true; only a and c are true. Statement d is false.
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