Not all journal entries affect cash flow.Adjusting entries that reflect events that have already occurred,but have no effect on cash,are classified as
A)accruals.
B)deferrals.
C)revaluations.
D)corrections.

Question

Quizplus · Accepted Answer

Accruals are adjusting entries that reflect events that have already occurred but have no effect on cash flow. Examples of accruals include accrued salaries and interest expense. Deferrals, on the other hand, reflect the timing difference between when cash is paid or received and when the related revenue or expense is recognized. Revaluations refer to adjustments made to the carrying value of assets, liabilities, or equity due to changes in market conditions. Corrections refer to the correction of errors in previous accounting periods.

Not All Journal Entries Affect Cash Flow