Royer Corporation engaged in this transaction:
Collected accounts receivable.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Does not represent a cash flow
B) Operating activities section
C) Financing activities section
D) Investing activities section

Question

Royer Corporation engaged in this transaction:
 Collected accounts receivable.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Does not represent a cash flow
B) Operating activities section
C) Financing activities section
D) Investing activities section

Quizplus · Accepted Answer

Collected accounts receivable represents a cash inflow for the company from its normal business operations, and hence appears in the operating activities section of the statement of cash flows.

Royer Corporation Engaged in This Transaction