Adjusting entries always affect the cash account.

Name: Adjusting entries always affect the cash account.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

Adjusting entries do not affect the cash account directly. Instead, they typically affect balance sheet accounts such as prepaid expenses, unearned revenue, and accrued expenses. These entries are necessary to ensure that financial statements accurately reflect the company's financial position and performance.

Adjusting Entries Always Affect the Cash Account