Of the following,which one affects cash during a period?
A)The payment of interest expense accrued in a previous accounting period.
B)Writing off an uncollectible account receivable.
C)The declaration of a cash dividend.
D)An adjusting entry recognizing the expiration of prepaid insurance.
E)The declaration of a stock dividend.

Question

Quizplus · Accepted Answer

The payment of interest expense accrued in a previous accounting period affects cash because it involves an actual cash outflow to settle the liability.

Of the Following,which One Affects Cash During a Period