On a statement of cash flows,cash receipts are reported as:
A)positive amounts.
B)negative amounts.
C)in parentheses.
D)operating activities only.

Question

Quizplus · Accepted Answer

Cash receipts are considered a positive inflow of cash, so they are reported as positive amounts on the statement of cash flows. Negative amounts would represent cash outflows or payments. Parentheses are sometimes used to indicate negative amounts, but this is not standard practice for cash receipts. Cash receipts may be reported in all three categories of activities: operating, investing, and financing.

On a Statement of Cash Flows,cash Receipts Are Reported As