An Increase in the Accounts Receivable Account During the Year

question 137

Multiple Choice

An increase in the accounts receivable account during the year should be reported on the statement of cash flows as:

• A)An increase in cash flows from operating activities
• B)An increase in cash flows from investing activities
• C)A decrease in cash flows from operating activities
• D)A decrease in cash flows from investing activities
• E)An increase in cash flows from financing activities

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Definitions:

Reliability

The extent to which a testing device delivers uniform and steady outcomes over time.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1.

Practicality

The degree to which something is realistic, feasible, or can be practically applied or implemented.

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