Which of the following transactions does NOT involve a cash flow?
A) Prepayment of insurance
B) Issue of shares
C) Accrual of waged expense
D) Revenue received in advance

Question

Quizplus · Accepted Answer

Accrual of wage expense involves an adjustment in the accounting records for unpaid wages that have been earned but not yet paid out. This does not involve an actual cash movement, so it is not a cash flow transaction. Prepayment of insurance, issue of shares, and revenue received in advance all involve actual movement of cash and therefore are cash flow transactions.

Which of the Following Transactions Does NOT Involve a Cash