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

Question

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

Quizplus · Accepted Answer

While collection of interest revenue is a cash inflow from operating activities, accrual of interest revenue does not impact cash; therefore, it does not affect cash flows.

What Effect Does the Following Journal Entry Have on the Amount