Revenue on account amounted to $9,000.Cash collections of accounts receivable amounted to $8,100.Cash paid for expenses was $7,500.The amount of employee salaries accrued at the end of the year was $900.Cash flow from operating activities was
A)$900.
B)$600.
C)$1,500.
D)$8,700.

Question

Quizplus · Accepted Answer

Cash flow from operating activities is calculated as cash collections ($8,100) minus cash paid for expenses ($7,500), resulting in $600. Accrued salaries do not affect cash flow until paid.

Revenue on Account Amounted to $9,000