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Financial Forensics · Quiz 1 · 26 Oct 2025 · September 2025 term

Question 20: Which of the following transactions affects both the inc…

Question 20

+1 markOne correct option

Which of the following transactions affects both the income statement and the statement of cash flows?

  1. A

    Selling stock in exchange for cash.

  2. B

    Declaring and paying a cash dividend.

  3. C

    Selling a product to a customer which creates an account receivable.

  4. D

    Paying employee salaries as they are earned.

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Correct answer

  • D

    Paying employee salaries as they are earned.

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Question 20 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 1 mark.

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