Practice question · Match the pairs
Match each transaction to its cash effect.
- Credit sale
- Collection from customer
- Depreciation
- Dividend payment
- Cash in, receivable down
- No cash moves, only a receivable and revenue
- No cash moves at all, a non-cash expense
- Cash out, equity down
Hints
- Ask whether money actually moved.
- Some real economic events involve no cash movement whatsoever.
Show the answer
- Credit sale → No cash moves, only a receivable and revenue
- Collection from customer → Cash in, receivable down
- Depreciation → No cash moves at all, a non-cash expense
- Dividend payment → Cash out, equity down
Why
Two of these four events touch no cash, the accrual system records them anyway because they are real economic events.
Practise Recording Transactions
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