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During 20A, Burton Company Delivered Products to Customers for Which

Question 52

Multiple Choice

During 20A, Burton Company delivered products to customers for which customers paid or promised to pay $3,820,000. The company collected $3,670,000 in cash from customers during the year. Indicate which of these amounts will appear on the statement of earnings and which on the statement of cash flows.


A) $3,670,000 appears on the statement of cash flows, and $3,820,000 appears on the statement of earnings.
B) $3,820,000 appears on both the statement of earnings and the statement of cash flows.
C) $3,820,000 appears on the statement of cash flows, and $3,670,000 appears on the statement of earnings.
D) $3,670,000 appears on both the statement of earnings and the statement of cash flows.

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