Which one of the following affects cash during a period?
A)Payment of an account payable
B)Declaration of a cash dividend
C)Write-off of an uncollectible account receivable
D)Recording depreciation expense

Question

Quizplus · Accepted Answer

Payment of an account payable affects cash during a period as it involves an outflow of cash. Declaration of a cash dividend involves a distribution of cash to shareholders and affects retained earnings, but not necessarily cash during a period. Write-off of an uncollectible account receivable and recording depreciation expense are non-cash transactions and do not affect cash during the period.

Which One of the Following Affects Cash During a Period