Which One of the Following Transactions Does Not Affect Cash

question 105

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:

Net Loss

Occurs when a company's expenses exceed its revenues during a specific period, leading to a negative profit.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Expenses

Costs incurred in the process of earning revenue, including operational, administrative, and marketing costs.