Cash received from customers for services rendered is classified as a cash flow from operating activities in a statement of cash flows.

Name: Cash received from customers for services rendered is classified as a cash flow from operating activities in a statement of cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash received from customers for services rendered directly relates to the primary revenue-producing activities of a business, thus it is classified as a cash flow from operating activities.

Cash Received from Customers for Services Rendered Is Classified as a Cash