Accounts Receivable Resulting from Sales to Customers Amounted to $40,000

question 100

Multiple Choice

Accounts receivable resulting from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

• A) $120,000
• B) $129,000
• C) $151,000
• D) $111,000

---

Definitions:

Types Of Accounts

Types of accounts refer to the various categories under which financial transactions are recorded in accounting, including assets, liabilities, equity, revenue, and expenses.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater value, based on the accounting equation.

Onscreen Forms

Digital or virtual forms displayed on a computer or other digital device's screen, allowing for electronic data entry.

QuickBooks

Accounting software designed for small to medium-sized businesses, offering on-premise accounting applications as well as cloud-based versions.