The collection of the principal amount of a note receivable is reported on the statement of cash flows as a(an)
A) a financing activity.
B) an investing activity.
C) a operating activity.
D) a noncash investing and financing activity.
E) both b amd c.

Question

Quizplus · Accepted Answer

The collection of the principal amount of a note receivable is considered an investing activity because it involves the conversion of an investment (the note receivable) into cash.

The Collection of the Principal Amount of a Note Receivable