Question
Which of the following transactions will affect both accounting profit and operating cash flow for an entity? (a) Cash sales of inventory. (b)Pay insurance premium
Which of the following transactions will affect both accounting profit and operating cash flow for an entity?
(a) Cash sales of inventory. (b)Pay insurance premium for next year in cash. (c)Pay cash dividends. (d)Depreciation.
Which stakeholders are most likely to be interested in an entitys debt ratio?
(a)Customers (b) Suppliers (c) Employees (d) Banks and debtholders
Under accrual accounting, which of the following transactions can be recognized as either an income or expense of the entity for the current month?
Group of answer choices
(a)Dividends paid in cash at the end of the current month.
(b)Cash deposit received in the current month, and service will be performed at the beginning of next month.
(c)An invoice sent to a customer for a service provided early in the current month.
(d) Rent prepayment for the next three months.
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