186k views
4 votes
________ causes a change in cash during a period.

A) Accrual of an expense
B) Recording depreciation expense
C) Payment of accounts payable
D) Declaration of cash dividend

1 Answer

4 votes

Final answer:

The correct answer to what causes a change in cash during a period is C) Payment of accounts payable. This option reflects an actual cash outflow, affecting the company's cash balance.

Step-by-step explanation:

The question 'Which of the following causes a change in cash during a period?' pertains to financial transactions that influence a company's cash balance. Among the given options, the correct answer is C) Payment of accounts payable. Paying off accounts payable is an actual cash outflow that would be recorded in a company's cash flow statement, thereby causing a change in the cash balance during a period.

On the other hand, the accrual of an expense (A) represents a non-cash expense that affects earnings but typically does not result in an immediate cash outflow. Recording depreciation expense (B) is also a non-cash transaction that reduces the book value of assets over time but does not directly affect the cash balance. Lastly, the declaration of a cash dividend (D) is a commitment to pay shareholders a dividend but does not change the cash balance until the dividend is actually paid.

User Erhnam
by
6.8k points