In 2020, Digital Asset Management Corp

question 87

Multiple Choice

In 2020, Digital Asset Management Corp. (DAM) collected $2,500,000 from its customers. These cash receipts would be reported on DAM's 2020 cash flow statement as a(n) :

• A) investing activity
• B) financing activity
• C) operating activity
• D) operating and investing activities

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Definitions:

Financial Statement Column(s)

Refers to the categorized sections within financial statements that display associated financial data, such as assets, liabilities, revenues, and expenses.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.

Adjusted Trial Balance

An Adjusted Trial Balance is a listing of all company accounts that will appear in the financial statements after year-end adjustments are made.

Financial Statement Column(s)

These are the columns in financial statements such as balance sheets and income statements, organizing financial information into categories like assets, liabilities, revenues, and expenses.