Cash and cash equivalent

  • When an asset (other than cash) increases, the Cash account decreases.

  • When an asset (other than cash) decreases, the Cash account increases.

  • When a liability increases, the Cash account increases.

  • When a liability decreases, the Cash account decreases.

  • When owner’s equity increases, the Cash account increases.

  • When owner’s equity decreases, the Cash account decreases.