Which of the following causes a change in cash?
A) Accrual of interest payable.
B) Recording of depreciation expense.
C) Write-off of an uncollectible account.
D) Payment of a cash dividend declared in the previous fiscal year.

Question

Quizplus · Accepted Answer

Payment of a cash dividend declared in the previous fiscal year results in an outflow of cash and therefore causes a change in cash. The other options- Accrual of interest payable, Recording of depreciation expense, and Write-off of an uncollectible account- are non-cash transactions and do not impact cash directly.

Which of the Following Causes a Change in Cash