Answered: Cash has a normal debit balance. What…

Cash has a normal debit balance. What does this mean in accounting? Be specific and provide as many details about this as you can. Use examples and show that you know the importance of this concept!

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 8DQ

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

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Cash has a normal debit balance. What does this mean in accounting? Be specific and provide as many details about this as you can. Use examples and show that you know the importance of this concept!

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