Closing the cash account at the end of the accounting cycle is required.

• A. True
• B. Not applicable
• C. Cannot be determined
• D. False

Answer: (D)

The important idea here is that only temporary (nominal) accounts are closed at the end of the period, while permanent accounts carry their balances forward. The closing process resets revenues, expenses, and any related accounts to zero for the new period and transfers their net effect to retained earnings. Cash is an asset, a permanent account, so its ending balance becomes the beginning balance for the next period and is not closed. Therefore, closing the cash account is not required. The statement is false. The other options don’t fit because the rules clearly specify that permanent accounts like cash are not closed, while temporary accounts are.