What Effect Does the Following Journal Entry Have on the Amount

question 53

Multiple Choice

What effect does the following journal entry have on the amount of cash generated by operating activities?

• A)Increases it
• B)Cannot be determined from the information given
• C)Has no effect
• D)Decreases it

Recognize the technologies and practices that facilitate effective collaboration.

Identify features of word-processing software that aid in collaborative writing.

Understand the role of diplomacy and constructive feedback in team dynamics.

Recognize the importance of adapting communication styles to cultural differences.

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Definitions:

Merchandise Purchases

Transactions involving the buying of goods intended for sale, usually in a retail or wholesale context.

Ending Merchandise Inventory

The value of goods available for sale at the end of an accounting period, before any year-end adjustments.

Accrued Salaries Expense

Refers to the salaries that have been incurred by the business but have not yet been paid or recorded in the financial statements.

Completed-Contract Method

An accounting method used where revenue and profit are deferred until a contract is completed, particularly useful in long-term projects.