Accounts Receivable Arising from Sales to Customers Amounted to $86000

question 62

Multiple Choice

Accounts receivable arising from sales to customers amounted to $86000 and $77000 at the beginning and end of the year respectively. Income reported on the income statement for the year was $290000. Exclusive of the effect of other adjustments the cash flows from operating activities to be reported on the statement of cash flows is

• A) $290000.
• B) $299000.
• C) $213000.
• D) $280000.

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Definitions:

Synergistic Benefits

Gains realized from the combination or cooperation of different groups, systems, or companies, where the result is greater than the sum of their separate effects.

Merger

The combination of two or more companies into one, to achieve greater efficiencies and strengthen financial and operational positions.

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.

Managerial Efficiency

A measure of the effectiveness with which managers utilize resources at their disposal to achieve organizational goals.