Revenue on account amounted to $3,000. Cash collections of accounts receivable amounted to $2,700. Cash paid for expenses was $2,500. The amount of employee salaries accrued at the end of the year was $300. Cash flow from operating activities was
A)$200.
B)$300.
C)$500.
D)None of these.

Question

Quizplus · Accepted Answer

$2,700 collected from customers - $2,500 paid for expenses = $200. Revenue earned on account and accrued salaries are not cash flow activities.

Revenue on Account Amounted to $3,000