Which of the Following Journal Entries Would Change the Net

question 99

Multiple Choice

Which of the following journal entries would change the Net Cash Flows from Operating Activities line of the statement of cash flows?

• 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:

Date of Payment

The specific day on which a payment is due or processed.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Average Collection Period

The average number of days it takes for a business to collect its receivables from customers.

Quick Assets

Assets that can be converted into cash quickly without significantly affecting their value, such as cash, marketable securities, and accounts receivable.