Which of the Following Items Would Decrease Profit for the Year

question 5

Multiple Choice

Which of the following items would decrease profit for the year?

• A) Purchase of equipment for cash
• B) Payment of a dividend
• C) Purchase of equipment on credit
• D) None of the answers provided

---

Definitions:

Accounts Receivable

Outstanding payments that a business is entitled to receive from its customers for delivered goods or services.

Miscellaneous Expense

A category for expenses that don't naturally fit into other specified categories in financial accounting.

Cash Account

A type of account in finance that records all cash transactions, including receipts and payments.

Cash Receipts

Records of all cash amounts received by a company, documenting sales, returns, and other transactions involving cash inflows.