Which of These Is Not a Way in Which Cash

question 22

Multiple Choice

Which of these is not a way in which cash flows may be manipulated?

• A) Deferring repayment of debts
• B) Charging excessive depreciation
• C) Use of barter
• D) Use of lease financing

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Definitions:

Closing Entry Process

The procedure used at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, clearing the temporary accounts for the next period.

Permanent Accounts

Permanent Accounts are balance sheet accounts whose balances are carried forward from one accounting period to the next, including assets, liabilities, and equity accounts.

Owner's Capital Account

An equity account on the balance sheet representing the owner's total investment in the business minus any withdrawals.

Temporary Accounts

Accounts that are closed at the end of each accounting period; examples include revenue, expense, and dividend accounts.