Which of the Following Activities Affects Net Income,but Has No

question 76

Multiple Choice

Which of the following activities affects net income,but has no immediate impact upon cash flows?

• A)Collection of an account receivable
• B)Making the end-of-period adjustment to record estimated uncollectible accounts
• C)Investing excess cash in marketable securities
• D)Write-off of an uncollectible account receivable against the allowance

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Definitions:

Domestic

Pertaining to or produced within a country's borders, often in contrast to foreign or international.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

Consumer Surplus

The divergence between the total price consumers are willing and able to contribute towards a good or service and the total price they actually contribute.

Japanese Government

The national government of Japan, characterized by a constitutional monarchy and a parliamentary government.