Which of the Following Activities Affects Profit, but Has No

question 99

Multiple Choice

Which of the following activities affects profit, 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 investments in securities.
• D) Write-off of an uncollectible account receivable against the allowance.

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Definitions:

Cost Schedule

A detailed listing showing the various quantities of a good or service and the associated costs of producing them.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service, a crucial concept in economics for optimizing production levels.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.