Which of the following transactions does not affect cash during a period?
A) Redemption of bonds
B) Write-off of an uncollectible account
C) Sale of common shares
D) Collection of an accounts receivable

Question

Quizplus · Accepted Answer

The write-off of an uncollectible account does not involve any actual cash flow, as the account was already deemed uncollectible and therefore already written off the books. The other transactions do involve cash inflows or outflows. Redemption of bonds involves paying back the bondholders their principal amount; sale of common shares involves receiving cash from investors in exchange for ownership in the company; collection of an accounts receivable involves receiving cash from a customer who owes the company money.

Which of the Following Transactions Does Not Affect Cash During