Revenue on account amounted to $6,200. Cash collections of accounts receivable amounted to $5,900. Cash paid for operating expenses was $4,100. The amount of employee salaries accrued at the end of the year was $1,900. What was the net cash flow from operating activities?
A)$1,800
B)$1,900
C)$2,100
D)$7,700

Question

Quizplus · Accepted Answer

Net cash flow from operating activities is calculated as cash collections minus cash paid for operating expenses. So, $5,900 (cash collections) - $4,100 (cash paid) = $1,800. Accrued salaries are not included in cash flow calculations as they are not cash transactions.

Revenue on Account Amounted to $6,200