All Else Equal,an Increase in Which One of the Following

question 36

Multiple Choice

All else equal,an increase in which one of the following will increase the operating cash flow?

• A)Employee salaries
• B)Office rent
• C)Building maintenance
• D)Equipment depreciation
• E)Equipment rental

Identify the function and necessity of subsidiary ledgers and special journals in accounting systems.

Understand the different types of journals (cash payments, cash receipts, purchases) and their respective uses in accounting transactions.

Comprehend the relationship between subsidiary ledgers and control accounts.

Learn the characteristics and benefits of an effective accounting information system.

---

Definitions:

Ledger Account

A record that keeps track of all the transactions related to a particular aspect of a business's finances, such as sales or assets.

Land And Buildings

Assets categorization in accounting, where land refers to the cost of land owned by a company and buildings to the cost of structures situated on the land.

Source Documents

Original records and documents that provide evidence of financial transactions and are the foundation for recording entries in the business’s accounting system.

Sales Receipts

Documents that evidence the sale of goods or services and the payment received for those sales.