When using the direct method, how is the collection of cash from customers shown on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing and financing activity

Question

Quizplus · Accepted Answer

The collection of cash from customers is a part of operating activities, as it relates to the core business operations of selling goods or services to customers.

When Using the Direct Method, How Is the Collection of Cash