If there is a change in cash,there will be a change in one or more noncash accounts.

Question

Quizplus · Accepted Answer

This is because cash is part of the balance sheet, and any changes in cash will affect the overall balance sheet equation, which must always be balanced, so other accounts must adjust accordingly. For example, if cash increases, there could be an increase in accounts receivable, inventory or investments. Conversely, if cash decreases, there could be a decrease in accounts payable, long-term debt or retained earnings, among other possibilities.

If There Is a Change in Cash,there Will Be a Change