Which of the following transactions do not affect cash?
1)Purchase inventory on credit
2)Accrue operating expenses
3)Collection of accounts receivable
4)Accrue taxes and interest
5)Reclassify long-term debt to short-term debt
A)1 and 2
B)1,2,and 4
C)1,2,3,and 5
D)1,2,4,and 5
E)1,2,3,4,and 5

Question

Which of the following transactions do not affect cash? 
1)Purchase inventory on credit
2)Accrue operating expenses
3)Collection of accounts receivable
4)Accrue taxes and interest
5)Reclassify long-term debt to short-term debt
A)1 and 2
B)1,2,and 4
C)1,2,3,and 5
D)1,2,4,and 5
E)1,2,3,4,and 5

Quizplus · Accepted Answer

Transactions 1, 2, 4, and 5 do not affect cash. Purchasing inventory on credit, accruing operating expenses, accruing taxes and interest, and reclassifying debt do not involve cash flows at the time of the transaction.

Which of the Following Transactions Do Not Affect Cash