Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Match the reporting classifications with the transactions described below.
-Investing cash inflow
A)Cash collection of a nontrade note receivable.
B)Cash collected on accounts receivable.
C)Issuance of a long-term note payable for cash.
D)Cash purchase of securities issued by another corporation.
E)Payment of a property dividend.

Question

Quizplus · Accepted Answer

Cash collection of a nontrade note receivable is classified as an investing cash inflow because it involves the collection of principal from a loan or note that is not related to the entity's primary operations.

Listed Below Are the Reporting Classifications for a Statement of Cash