Which of the following statements about the tabular summary and account form of the cash account is correct?
A) All negative amounts in a tabular summary are cash payments and are recorded as debits under the account form.
B) All positive amounts in the tabular summary are cash receipts and are recorded as credits under the account form.
C) A positive cash balance in a tabular summary is reflected as a debit balance under the account form.
D) Companies are required to use both a tabular summary and the account form.

Question

Quizplus · Accepted Answer

In accounting, a positive cash balance represents an asset and is recorded as a debit balance in the account form. This reflects the fundamental accounting principle that assets increase on the debit side. Choices A and B incorrectly describe the nature of debits and credits in relation to cash payments and receipts, and choice D is incorrect because companies are not required to use both forms; they may choose the method that best suits their needs.

Which of the Following Statements About the Tabular Summary and Account