How would cash collected from customers appear on the Statement of Cash Flows?
A)As an operating activity
B)As a financing activity
C)As an investing activity
D)Under the indirect method

Question

Quizplus · Accepted Answer

Cash collected from customers is considered a part of operating activities as it relates to the day-to-day sale of goods or services. This inflow of cash is recorded as an increase in cash collected from customers in the operating section of the statement of cash flows.

How Would Cash Collected from Customers Appear on the Statement