In the First Month of Operations, the Total of the Debit

question 264

Multiple Choice

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,000 and the total of the credit entries to the Cash account amounted to $600. The Cash account has a

• A) $600 credit balance.
• B) $1,000 debit balance.
• C) $400 debit balance.
• D) $600 credit balance

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Definitions:

Financial Ground

The state of financial stability or condition of an individual or organization.

Operating Lease

A lease agreement for short-term leasing of assets without transferring ownership rights.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Financial Lease

A type of lease wherein the lessee has possession and control of an asset during its significant life but does not own the asset, effectively treating it as a loan with asset as collateral.