Which one of the following affects cash during a period? Recording depreciation expense. Write-off of an uncollectible account receivable. Disposal of equipment at a total loss. Payment of an account payable. Solution Payment of accounts payable, in this transaction cash is being paid and the account will e credited, hence will reduce the cash balance. Recording of depreciation does not affect cash as it is a journal entry, there is no receipt or payment involved. Similarly, when we write off uncollectible accounts receivable, there is no payment or receipt of cash and as such cash balance is not affected. When the equipment is sold at a total loss, that means there has been no payment received and the entire written down value of the equipment is considered as loss on sale whihc is recorded by way of a journal entry .

1. Which one of the following affects cash during a period?
Recording depreciation expense.
Write-off of an uncollectible account receivable.
Disposal of equipment at a total loss.
Payment of an account payable.
Recording depreciation
expense.
Write-off of an uncollectible account receivable.
Disposal of equipment at a total loss.
Payment of an account payable.
Solution
Payment of accounts payable, in this transaction cash is being paid and the account will e
credited, hence will reduce the cash balance.
Recording of depreciation does not affect cash as it is a journal entry, there is no receipt or
payment involved. Similarly, when we write off uncollectible accounts receivable, there is no
payment or receipt of cash and as such cash balance is not affected. When the equipment is sold
at a total loss, that means there has been no payment received and the entire written down value
of the equipment is considered as loss on sale whihc is recorded by way of a journal entry