What Is the Effect on Profit and Cash of a Firm

question 37

Multiple Choice

What is the effect on profit and cash of a firm paying a trade creditor?

• A)Decrease in profit and decrease in cash.
• B)No effect on profit and decrease in cash.
• C)No effect on profit and no effect on cash.
• D)Decrease in profit and no effect on cash.

Understand the concept and importance of predictive value in accounting information.

Identify and understand the constraints in accounting, such as cost and materiality.

Know different measurement principles used in accounting, specifically the historical cost and fair value.

Understand the circumstances under which accounting principles can be changed and the justification required for such changes.

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Definitions:

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A form of psychotherapy aimed at increasing a patient's awareness of underlying motives and defenses.

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Processes or methods used in psychotherapy that facilitate psychological change and healing.

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