Question

In: Accounting

Which one of the following affects cash during a period?


Which one of the following affects cash during a period? 

Select one: 

a. Declaration of a cash dividend 

b. Recording depreciation expense 

c. Payment of an accounts payable 

d. Write-off of an uncollectible account receivable

Solutions

Expert Solution

The correct answer is

C) Payment of an account payable

Explanation

payment of account payable leads to cash outflow as payment has been made to supplier and liability for it has been decreased. Remaining all options do not lead to cash outflow as declaration of dividend is just booking of liability for dividend payable and depreciation is non cash item and account receivable is also non cash journal entry.

ekkarill92 answered 2 years ago
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