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29 November, 00:52

Which of the following transactions does not affect cash during a period?

Write-off of an uncollectible account

Collection of an accounts receivable

Sale of treasury stock

Exercise of the call option on bonds payable

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  1. 29 November, 04:19
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    Write-off of an uncollectible account

    Explanation:

    Write off of an uncollectible account does not affect cash. Uncollectibles are outstanding debt amounts that are way overdue and it is unlikely that the debtor (s) will ever pay them back; there are no cash inflows or outflows. Before, the write-off, these debts are considered accounts receivables. Collection of accounts receivable is a cash inflow, sale of treasury stock is also a cash inflow and exercise of a call option on issued bonds (bond payable) is a cash inflow too.
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