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Reader Question: Asset or Expense?

FinanceLegacy

I’m a QuickBooks user – relatively new. How would one post the moving of cash from a checking account to a CD?  Some say it’s an expense item. I question this. It’s still a cash asset.  So how should such be posted and reported using QuickBooks?

Yes, you are correct. Moving cash from a checking account to a CD, the item still remains an asset.  You would create a general journal entry that would look like this:  Credit to your checking account and Debit to your CD account, which you set up as a cash account.

Profile: Jillian Dearing

Throughout Jillian's 20+ years as an Accountant and Office Manager, she has worked for companies both large and small including government contractors, law firms, insurance companies, property managers and accounting firms.