Cash collected from accounts receivable is shown on the cash flow statement as a(n):

Question

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Cash collected from accounts receivable is a result of operating activities, as it represents the cash received from the company's primary source of revenue generation. It does not involve the purchase or sale of long-term assets (investing activity) or any financing activities such as issuance of debt or equity (financing activity).

Cash Collected from Accounts Receivable Is Shown on the Cash