Question

6. When making adjusting entries, which account is never affected?

A. Capital

B. Withdrawal

C. Fees Expense

D. Cash

Answer 1

It never affects D. Cash

Answer 2

Cash is never affected.

Explanation:

When making adjusting entries, cash is never impacted.

Adjusting entries means to make the account up to date at the end of the accounting period.

All adjusting entries affect a minimum of one income statement account and one balance sheet account, but this never affects cash.