A cash account shows all receipts of cash on the right hand side and all payments of cash on the left hand side

Question

Quizplus · Accepted Answer

A cash account shows all receipts of cash on the left hand side and all payments of cash on the right hand side. This is because the left side represents the debit side or increase in assets (in this case, cash received), while the right side represents the credit side or decrease in assets (in this case, cash paid out).

A Cash Account Shows All Receipts of Cash on the Right