On a Statement of Cash Flows, Collection of Accounts Receivable

question 80

Multiple Choice

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

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

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Definitions:

Special Order Units

Units that are produced or modified specifically as per the customer's specifications, often requiring a deviation from the normal production process.

Annual Financial Advantage

The financial benefit that is realized on an annual basis from a particular investment or action, compared to alternative options.

Accepting Order

The process of agreeing to fulfill a customer's request for goods or services.

Monthly Financial Advantage

This term does not correspond to a widely recognized financial concept. However, it could refer to the monthly surplus or savings that a business or individual achieves after covering all their expenses.