Which of the Following Expenses Has NO Effect on the Cash

question 11

Multiple Choice

Which of the following expenses has NO effect on the cash flow of a firm?

• A) salaries expense
• B) interest expense
• C) depreciation expense
• D) cost of goods sold

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Definitions:

Cash Discount Amount

A reduction in the price of an item or service that is offered by the seller as an incentive for early payment by the buyer.

Cash Discount

A discount given for a cash purchase.

Cost Of Goods Sold

The direct costs attributed to the production of goods sold by a company, including materials and labor.

Expensive Financing

Funding options for companies or individuals that come with high costs, often due to high interest rates or fees.