SRJ Corporation Entered into the Following Transactions: • the Accrual

question 89

Multiple Choice

SRJ Corporation entered into the following transactions: • The accrual of interest expense on a six-month note payable.
• Collected cash for services to be provided within the next six months.
• The reclassification of short-term debt to long-term debt.
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Which of the transactions for SRJ Corporation resulted in a decrease in working capital?

• A)The accrual of interest expense.
• B)Collecting cash for services to be provided in the future.
• C)Collecting cash on accounts receivable.
• D)Both the accrual of interest expense and collecting cash for services to be provided in the future.

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Definitions:

Systems Perspective

An analytical approach that views an organization as an arrangement of interrelated parts working together to accomplish specific goals.

Working Part

Components of a process or system that are actively engaged in performing a task or function.

Clearly-Defined Career Path

A specific, well-established progression of steps or stages in one's professional life, offering a predictable sequence of advancements and opportunities.

Accounting, OB, And Marketing

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