Offering discounts to accelerate the collection of accounts receivables in an example of which cash-related activity in the cash flow cycle?
A)Operating activity
B)Profitability activity
C)Investing activity
D)Financing activity

Question

Quizplus · Accepted Answer

Offering discounts to accelerate the collection of accounts receivables is part of the operating activity in the cash flow cycle. Operating activities involve the day-to-day business operations that generate revenues and expenses, including the management of accounts receivables and payables.

Offering Discounts to Accelerate the Collection of Accounts Receivables in an Example