Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, an accounts receivable decrease would be classified on the statement of cash flows.
A)Operating activities section.
B)Investing activities section.
C)Financing activities section.
D)Does not represent a cash flow.

Question

Quizplus · Accepted Answer

A decrease in accounts receivable would be classified as a cash inflow from operating activities because it represents a collection of cash from customers for sales made on credit in a prior period.

Assume That the Fitzgerald Corporation Uses the Indirect Method to Depict