Which of the Following Transactions Affects Both the Income Statement

question 95

Multiple Choice

Which of the following transactions affects both the income statement and the statement of cash flows?

• A)Selling stock in exchange for cash.
• B)Declaring and paying a cash dividend.
• C)Selling a product to a customer which creates an account receivable.
• D)Paying employee wages as they are earneD.Paying an employee wages as they are earned results in an expense being recognized (income statement) and a cash outflow (statement of cash flows).

---

Definitions:

Selection Process

The series of steps used by an organization to recruit and choose the most suitable candidates for a job.

Predictors

Elements or variables that can be used to forecast or anticipate the outcome of a certain event or trend.

Training

The process of enhancing the skills, knowledge, and competencies of employees through structured learning activities to improve job performance.

Hiring Decision

The process and reasoning behind choosing a candidate for a job position.