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

Question

Quizplus · Accepted Answer

Accrual of wage expense does not involve a cash flow as the payment of wages has not yet been made. It represents a liability that will be settled with a cash outflow in the future. The other transactions involve actual cash outflows or inflows. Prepayment of insurance involves a cash outflow, issue of shares involves a cash inflow, and unearned revenue involves a cash inflow followed by a future cash outflow.

Which of the Following Transactions Does NOT Involve a Cash