Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 48 - No. 7)
Which of the following transactions would increase the balance in the 'Cash' account?
A customer pays their accounts receivable.
The owner invests cash in the business.
The business purchases equipment for cash.
The business takes out a loan.
Explanation
Cash increases when the business receives cash from customers, the owner invests cash, or a loan is taken out. A purchase for cash decreases the cash.
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