Cash Account Debit or Credit is an accounting term that refers to the movement of money into or out of a business’s bank account. When a company receives money, whether in the form of cash, cheques, or wire transfers, it is recorded as a credit on their cash account. When a company spends money, either through making payments, withdrawing cash, or buying inventory, it is recorded as a debit on their cash account. By tracking these debits and credits, businesses can keep track of their overall financial health.