Which of the Following Transactions Affects Cash Flows

question 25

Multiple Choice

Which of the following transactions affects cash flows?

• A)Accrual of interest receivable
• B)Issuance of a stock dividend
• C)Recognition of depreciation expense
• D)Payment of dividends declared in a previous year

---

Definitions:

Usage of Trade

Refers to the customs and practices commonly observed and accepted in a particular industry or trade.

Parol Evidence Rule

A legal principle that prohibits the introduction of oral or extrinsic evidence to alter or contradict the terms of a written contract.

Specific Provisions

Special clauses in a contract or law that are designed to cover particular details and scenarios, differing from general provisions.

Oral Contract

A verbal agreement between parties that is legally binding, provided it meets all requirements of a valid contract.