For each item listed below, identify how it will be reported on the Statement of Cash Flows under the indirect method.
-Decrease in accounts receivable
A)Operating activity
B)Investing activity
C)Financing activity
D)Not reported separately on the cash flow statement

Question

Quizplus · Accepted Answer

A decrease in accounts receivable would result in an increase in cash flows from operating activities. This is because a decrease in accounts receivable means that the company collected more cash from customers, which is considered an inflow of cash from operating activities.

For Each Item Listed Below, Identify How It Will Be