Question

Which of the following transactions does not affect cash during a period? O A. Exercise of the call option on bonds payable O
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Answer #1

Your required answer is option B i.e. Write-off of an uncollectible account.

Explanation:

Write-off of uncollectible accounts does not affect the cash since it is an amount that will not be recived by the company and therefore they are writing off this amount. In simple words we can it say it is Bad Debt or Loss of the company.

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