When Cash Is Received in Payment of an Account Receivable

question 63

Multiple Choice

When cash is received in payment of an account receivable, which section of the Statement of Cash Flows is affected?

• A) Cash Flow from Operating Activities
• B) Cash Flow from Investing Activities
• C) Cash Flow from Financing Activities
• D) There is no effect on the Statement of Cash Flows.

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Definitions:

Korsakoff Syndrome

A chronic memory disorder primarily caused by severe deficiency of thiamine (vitamin B1), often associated with prolonged alcoholism.

Defensive Coping

A psychological strategy wherein individuals deal with stress or adversity by minimizing its perceived threat or impact to avoid confronting the actual issue.

Self-Deception

The psychological process of denying or rationalizing away the relevance, significance, or truth of contrary evidence or logical argument.

Confrontation

A direct engagement or encounter between parties with conflicting views or goals, often aiming to resolve disagreement.