Which of the Following Journal Entries Would Have an Effect

question 85

Multiple Choice

Which of the following journal entries would have an effect on cash from operating activities?

• A)Recording bad debts.
• B)Recording depreciation.
• C)Recording loss on sale of investment.
• D)Recording cash paid for interest on long-term note payable.

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Definitions:

Personal Defense

Refers to the actions and strategies employed by an individual to protect themselves from harm or danger.

Disaffirm

In contract law, to indicate by a statement or act an intent not to live up to the terms of the contract.

Real Defense

A defense in law that allows a promissory note or negotiable instrument to be invalidated based on factors like fraud or forgery.

Holder in Due Course

A legal term describing someone who has acquired a negotiable instrument (like a check) in good faith and without knowledge of any defects.