Is the cash account debited or credited when you receive $250 in cash?

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Multiple Choice

Is the cash account debited or credited when you receive $250 in cash?

Explanation:
Receiving cash increases an asset, and assets have a normal debit balance. So when you get $250 in cash, you record a debit to the cash account for 250. The other side of the entry would be a credit to the related account (such as Sales Revenue for a cash sale, or Accounts Receivable if you’re collecting a prior receivable), but the cash account itself is increased with a debit.

Receiving cash increases an asset, and assets have a normal debit balance. So when you get $250 in cash, you record a debit to the cash account for 250. The other side of the entry would be a credit to the related account (such as Sales Revenue for a cash sale, or Accounts Receivable if you’re collecting a prior receivable), but the cash account itself is increased with a debit.

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