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Which of the following transactions would cause the cash balance of Firm A to increase but not affect its net income for the year?
a. Firm A records depreciation expense.
b. Firm A purchases a piece of land by issuing debt.
c. A customer pays for a product that was purchased on account and delivered last year.
d. Firm A receives and pays its rent bill for the current month.
ANSWER:
c. A customer pays for a product that was purchased on account and delivered last year.