What Types of Accounts Are Typically Affected by Investing Cash

question 41

Essay

What types of accounts are typically affected by investing cash flows in the statement of cash flows?

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Definitions:

Customer Account Balances

The amounts owed to a company by its customers for goods or services delivered on credit.

Adjusting Entries

Entries made in the accounting records to realign the balances of accounts before financial statements are prepared.

Accrued Expense

An expense that has been incurred but not yet paid, recognized on the financial statements.

Long-Lived Asset

An asset expected to provide economic benefits over a period longer than one year, such as buildings or machinery.