Ingles Corp., a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows. Assume the indirect method is used. Ingles Corp. experienced a decrease in accounts receivable in the
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 indicates that cash has been collected from customers, which is an operating activity.