Which One of the Following Transactions Does Not Affect Cash

question 51

Multiple Choice

Which one of the following transactions does not affect cash during a period?

• A)Write-off of an uncollectible account receivable
• B)Collection of an account receivable
• C)Sale of common shares
• D)Repayment of a bank loan

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Definitions:

Cost Object

Any item for which cost is measured and assigned, including products, services, projects, departments, or activities.

Selling Expenses

Costs incurred directly and indirectly in selling a product, including advertising, sales staff salaries, and commissions.

Administrative Expenses

Costs related to the general operation of a business that are not directly tied to producing goods or services.

Period Costs

Expenses that are incurred regardless of the level of production, such as sales and administrative costs, and are directly expensed on the income statement.