Closing Entries Do Not Affect the Cash Account

question 121

True/False

Closing entries do not affect the cash account.

---

Definitions:

Balance Sheet

A record that presents a summary of a business's assets, liabilities, and shareholders' equity at a given time.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The profit remaining after all expenses, taxes, and costs have been deducted from total revenue.

Assets

Resources owned or controlled by a business or individual that have expected future economic benefit.