A Transaction That Would Not Appear in a Statement of Cash

question 23

Multiple Choice

A transaction that would not appear in a statement of cash flows is:

• A) the creation of an allowance for doubtful debts.
• B) the upward revaluation of an asset.
• C) a bonus issue of shares.
• D) all of the above.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded at the end of an accounting period.

Current Assets

Current Assets are assets that a company expects to convert into cash or use up within one year or its operating cycle, whichever is longer.

Balance Sheet

A description of a company's financial standing, including assets, liabilities, and shareholders' equity at a particular point.

Common Stock

Common Stock represents ownership shares in a corporation, giving shareholders voting rights and a share in the company's profits, often through dividends.