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F. Naz
F. Naz, B.Com
Category: Single Problem
Satisfied Customers: 5328
Experience:  Have completed B.Com and CA Finalist
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Which of the following QB actions will have an effect on

Customer Question

which of the following QB actions will have an effect on cash flow in the period they were entered?
a. An accounting entry for Depreciation Expense
b. Creating a sales order
c. Accruing an expense in an earlier month which will be paid in a subsequent month
d. Creating an inventory build from existing raw materials
e. All of these (a-e)
f. None of the them(a-e)Please indicate which one you choose and give reasons.
Submitted: 1 year ago.
Category: Single Problem
Expert:  F. Naz replied 1 year ago.

f. None of the them

As no entry from a to d has an impact on the cash flow, it is very simple, make a entry and if there is no cash is debited or credited, it means that no cash flow is involved. For a. The debit will be depreciation expense and credit will be accumulated depreciation, for b it is an information no entry is required, for c the expense will be debited and payable will be credited and for d, finished goods will be debited and raw material will be credit. It is very clear that no cash either has been debited or credited.

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