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Subjects>Business>Accounting

Why is cash a credit in accounting?

Anonymous

∙ 14y ago

Updated: 9/18/2023

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)

Wiki User

∙ 14y ago

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Q: Why is cash a credit in accounting?

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Is associated with the cash basis of accounting?

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all vendors are paid on credit

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