Question

_______ causes a change in cash during a period.

A) Write off of an uncollectible account receivable
B) Recording depreciation expense
C) Payment of an account payable
D) Declaration of a dividend

Answer 1

The write off of an uncollectible account receivable causes a change in cash during a period(option a).

Step-by-step explanation:

The correct answer is A) Write off of an uncollectible account receivable.

Writing off an uncollectible account receivable means that the company is acknowledging that the customer will not be able to pay the amount owed. This leads to a decrease in the company's assets, specifically cash. As a result, the company's cash balance decreases, which causes a change in cash during a period.

For example, if a company had $100 in accounts receivable but determines that $20 is uncollectible, it would write off the $20 as bad debt. This write-off reduces the company's cash balance by $20, leading to a change in cash during the period.