What effect does the following journal entry have on the amount of cash generated by operating activities?

A)Decreases it
B)Increases it
C)Has no effect
D)Cannot be determined from the information given

Question

What effect does the following journal entry have on the amount of cash generated by operating activities?

A)Decreases it 
B)Increases it 
C)Has no effect 
D)Cannot be determined from the information given

Quizplus · Accepted Answer

While cash flows reported as operating activities include cash receipts from revenues,including interest,the accrual of interest revenue does not impact cash.

What Effect Does the Following Journal Entry Have on the Amount