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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

Respuesta :

Answer:

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.

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