On a Statement of Cash Flows, Collection of Accounts Receivable

question 141

Multiple Choice

On a statement of cash flows, collection of accounts receivable are classified as:

• A)an financing activity.
• B)an investing activity.
• C)an operating activity.
• D)noncash investing and financing activity.

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Definitions:

Loanable Funds

The funds in financial institutions that are available for borrowing.

Higher Interest Rate

An increased percentage charged on borrowed money or paid on savings and investments.

Public Saving

Public saving refers to the surplus of government revenues over government spending. It's a component of national savings along with private savings.

Private Saving

The portion of household and business income that is not spent on current consumption but instead is saved or invested for future use.