Practice question · Select all that apply
Which transactions involve NO cash movement?
Hints
- Ask in each case whether money physically changed hands.
- Anything done on credit defers the cash to a later date.
Show the answer
- A. Recording monthly depreciation
- B. A credit sale to a customer
- D. Purchasing inventory on credit
Why
Depreciation, credit sales, and credit purchases all happen without cash changing hands. Only paying wages actually moves cash, the rest create receivables, payables, or allocations.
Practise Recording Transactions
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