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

---

Definitions:

Board of Directors

A group of individuals elected to represent shareholders and oversee the major decisions and policies of an organization.

Preemptive Right

A shareholder’s right to purchase a proportionate share of every new offering of stock by the corporation.

Shareholder's Right

The entitlements or privileges granted to an individual or entity that owns shares in a corporation, including the right to vote on corporate matters and to receive dividends.

Shareholder Proposal

A suggestion submitted by a shareholder about a broad company policy or procedure.