Debiting the cash account will increase the cash balance.

• A. Decreases
• B. Increases
• C. No effect
• D. Increases revenue

Answer: (B)

Asset accounts such as cash have normal debit balances, so a debit increases the balance and a credit decreases it. Debiting the cash account therefore adds to the cash balance. This is why receiving cash or otherwise increasing cash is recorded with a debit to cash (for example, debit Cash and credit Revenue or another asset/liability depending on the transaction). In contrast, crediting cash would reduce the cash balance, and increasing revenue is a separate action recorded by crediting a revenue account, not by debiting cash.