Which of the Following Transactions Would NOT Affect Cash

question 153

Multiple Choice

Which of the following transactions would NOT affect Cash?

• A) payment to a supplier on account
• B) purchase of supplies on account
• C) payment of salaries for the week
• D) prepaying an insurance premium

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Definitions:

Generate Funds

The process of creating financial resources for a company through various means such as operations, financing, or investments.

External Financing

Funds raised from outside the company, typically through borrowing, issuing equity, or receiving grants, as opposed to internal funds generated from operations.

Full Capacity

The maximum level of output that a company can sustain over a period of time without increasing costs.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets.