Which of the following items involving current trade accounts receivable is most likely to appear in a Statement of Cash Flows?
A) Balance in allowance for uncollectible accounts
B) Write-off of a specific account
C) Sales returns and allowances
D) Collection of an account previously written off
E) Change in net sales

Question

Quizplus · Accepted Answer

The collection of an account previously written off would result in an inflow of cash and be reflected in the Statement of Cash Flows. The balance in allowance for uncollectible accounts (A) and write-off of a specific account (B) only affect the balance sheet, while sales returns and allowances (C) and change in net sales (E) are reflected in the income statement.

Which of the Following Items Involving Current Trade Accounts Receivable