Cash and profit answer different questions. A cash account tracks money received and paid; accrual profit tracks revenue earned and expenses recognized for a period.
Start with the other side of the entry
A debit to Cash identifies an increase in an asset. It does not identify revenue by itself. A credit to Cash identifies a decrease, which might pay an expense, acquire an asset, or settle a liability.
Example: a customer advance
A tutoring business receives 900 dollars in August for lessons scheduled in September. On receipt, it debits Cash and credits Unearned Revenue, a liability. August cash rises by 900 dollars, but receiving the advance alone does not earn revenue.
When the promised lessons are delivered in September, the business debits Unearned Revenue and credits Service Revenue. September revenue rises without another cash receipt.
Separate timing from direction
For an asset with a normal debit balance:
Include the beginning balance once. If it is already shown on the debit side of a T-account, do not add it again. The final account balance belongs in the trial balance; total debit activity does not.
Before calling a cash movement income or expense, identify the offsetting account and when the underlying service or benefit was earned or consumed.
Related question
Apply this knowledge
Use the concept guide to understand the reasoning, then return to the complete question and worked answer.
Consider the Following T-Account for Cash: Balance and Transaction ExamplesSources
These references support the core concepts and interpretation boundaries explained above.