For many entities, cash balances represent a large proportion of assets. However, the
amount of cash flowing through the accounts over a period of time is usually smaller than for
any other account in the financial statements.

Question

Quizplus · Accepted Answer

Cash accounts often see a high volume of transactions, making the amount of cash flowing through these accounts over a period of time larger, not smaller, compared to many other accounts in the financial statements.

For Many Entities, Cash Balances Represent a Large Proportion of Assets