Final answer:
A credit to Cash will result in a decrease in assets since it signifies a reduction in the company's cash reserves. Credits made to asset accounts, including cash, are recorded on the right side of a T-account and reduce the overall assets.
Step-by-step explanation:
A credit to Cash will typically represent a decrease in the cash asset on the company's balance sheet, which means it will C. Decrease assets. In accounting, a credit to an asset account indicates a reduction in its balance. Therefore, when a company credits its Cash account, it is decreasing the total amount of cash it has on hand, which reduces the company's overall assets.
Understanding the basics of a T-account can help clarify this concept. The "T" in a T-account separates the assets of a firm, on the left, from its liabilities and stockholders' equity on the right. When a transaction occurs such as a credit to the cash account, it is recorded on the right side of the T-account, indicating a deduction from the asset.