Which of the Following Journal Entries Has an Effect on Cash

question 126

Multiple Choice

Which of the following journal entries has an effect on cash provided by (used in) operating activities?

• A)Bad debts expense.
• B)Depreciation expense.
• C)Sale of an investment.
• D)Payment of interest on long-term notes payable.

Calculate the value of ending inventory under both absorption and variable costing.

Understand the concept of contribution margin.

Analyze the impact of cost structure on gross margin and contribution margin.

Determine the effect of inventory changes on net operating income under different costing methods.

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Definitions:

Car Buyer

An individual or entity that purchases a vehicle for personal use, commercial use, or resale.

Principal Debtor's

Pertains to the main individual or entity obligated to repay a debt or loan.

Lack of Capacity

The legal inability of an individual or entity to engage in certain activities or enter into contracts due to age, mental state, or other disqualifications.

Surety

Surety is a financial guarantee provided by a third party, promising to pay a debt or perform an obligation if the primary party fails to do so.