The cash during a period is affected when:
A) a depreciation expense is incurred.
B) a stock dividend is declared.
C) a bad debt expense is written off.
D) a discount is given to creditors.

Question

Quizplus · Accepted Answer

Giving a discount to creditors means that cash payments are being made at a lower amount than originally owed, which positively impacts cash during the period. Choices A, B, and C do not directly affect cash during the period.

The Cash During a Period Is Affected When