On a statement of cash flows prepared using the direct method,cash received from selling merchandise is considered a ________.
A)cash inflow from investing activities
B)cash inflow from operating activities
C)cash outflow from financing activities
D)cash outflow for financing activities

Question

Quizplus · Accepted Answer

Cash received from selling merchandise is considered as revenue from the primary operations of a business and is hence classified as a cash inflow from operating activities in the statement of cash flows prepared using the direct method.

On a Statement of Cash Flows Prepared Using the Direct