How does accounts receivable affect the statement of cash flows for 2012?
A)a use of $4,218 of cash as an investment activity
B)a source of $807 of cash as an operating activity
C)a use of $4,218 of cash as a financing activity
D)a source of $807 of cash as an investment activity
E)a use of $807 of cash as an operating activity

Question

Quizplus · Accepted Answer

Change in accounts receivable for 2012 = $4,218 - $3,411 = $807An increase in accounts receivable is a use of cash as an operating activity.

How Does Accounts Receivable Affect the Statement of Cash Flows