Final answer:
The size of retained earnings is not directly related to the size of a company's cash account.
Step-by-step explanation:
The statement that the size of retained earnings is directly related to the size of a company's cash account is False.
Retained earnings are a portion of a company's profits that are not paid out to shareholders, but instead, reinvested back into the company. It represents the cumulative earnings of the company over time. On the other hand, the cash account represents the amount of cash available to the company at a specific point in time.
While retained earnings can contribute to an increase in the cash account if the company is generating profits, they are not directly related to each other as there can be other factors that affect the cash account such as expenses, investments, and operating activities.