Adjusting entries never affect a business's cash account.
Answer the following statement true (T) or false (F)
True
Transactions affecting the Cash account are recorded during the first step (recording transactions) of the accounting cycle. Adjusting entries are made at the end of the accounting period so that all revenue and expense account balances and related asset and liability account balances are updated prior to their use in preparing the financial statements. These entries are recorded during the second step (Adjusting the accounts) of the accounting cycle. Adjusting entries never affect the Cash account.
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