In a statement of cash flows,collections of accounts receivable are classified as:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Revenues and Gains.

Question

Quizplus · Accepted Answer

Collections of accounts receivable represent cash inflows from customers for goods or services sold during the normal course of business. Therefore, they are classified as operating activities in the statement of cash flows. Financing activities involve obtaining or repaying funding, while investing activities involve the acquisition or disposal of long-term assets. Revenues and gains are reported on the income statement, but are not separate classifications on the statement of cash flows.

In a Statement of Cash Flows,collections of Accounts Receivable Are