If the Cash account has a credit balance, which of the following statements is true?
A)This is the normal balance for cash.
B)An error has occurred and must be corrected before financial statements can be prepared.
C)The account needs to be analyzed to determine the reason for the credit balance.
D)Debit postings exceed the credit postings for the accounting period.

Question

Quizplus · Accepted Answer

A credit balance in a Cash account is unusual and indicates that the account should be analyzed to determine the reason, as it typically suggests an error or an overdraft situation.

If the Cash Account Has a Credit Balance, Which of the Following