Not All Journal Entries Affect Cash Flow

question 33

Multiple Choice

Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as

• A)accruals.
• B)deferrals.
• C)revaluations.
• D)corrections.

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Definitions:

Stabilization

is the process of maintaining or bringing an economic system to a state of balance and reducing volatility.

Excise Tax

A tax imposed on specific goods, services, and activities, such as gasoline, alcohol, and tobacco, often included in the purchase price, used by governments to generate revenue or discourage consumption.

Regressive

A term especially used in taxation to describe a situation where the tax rate decreases as the amount subject to taxation increases.

Progressive

A political and social philosophy advocating for reforms and changes that aim to address inequality and improve the social welfare of the population.