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Subjects>Business>Accounting

Why is cash a credit in accounting?

Updated: 9/18/2023

Wiki User

∙ 14y ago

Best Answer

Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.

Cash = Current Asset = Debit Balance

(GAAP)

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Continue Learning about Accounting

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Drawings in accounting are recorded as a double entry in the cash book. This is a credit to the bank account and a debit to the cash account.

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