Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, accounts receivable collected would be classified on the statement of cash flows.
A) Operating activities section.
B) Investing activities section.
C) Financing activities section.
D) Does not represent a cash flow.

Question

Quizplus · Accepted Answer

Accounts receivable collected is classified under the operating activities section because it represents cash inflows from the company's core business operations.

Assume That the Fitzgerald Corporation Uses the Indirect Method to Depict