Revenue on account amounted to $9,000.Cash collections of accounts receivable amounted to $8,100.Cash paid for operating expenses was $7,500.The amount of employee salaries accrued at the end of the year was $900.What was the net cash flow from operating activities?
A)$900
B)$600
C)$1,500
D)$8,700

Question

Quizplus · Accepted Answer

Cash collected on accounts receivable of $8,100 - Cash paid for operating expenses of $7,500 = $600.Revenue earned on account and accrued salaries are not cash flow activities.

Revenue on Account Amounted to $9,000