Which of the following transactions affects both the income statement and the statement of cash flows?
Posted: Sat Aug 07, 2021 7:09 am
A) Selling stock in exchange for cash.
B) Declaring and paying a cash dividend.
C) Selling a product to a customer which creates an account receivable.
D) Paying employee wages as they are earned.
Answer: D
Explanation: Paying an employee wages as they are earned results in an expense being
recognized (income statement) and a cash outflow (statement of cash flows).
B) Declaring and paying a cash dividend.
C) Selling a product to a customer which creates an account receivable.
D) Paying employee wages as they are earned.
Answer: D
Explanation: Paying an employee wages as they are earned results in an expense being
recognized (income statement) and a cash outflow (statement of cash flows).