When Accounting for Cash Collected from Customers, the Transaction Would

question 98

Multiple Choice

When accounting for cash collected from customers, the transaction would appear on the cash flow statement as a(an) :

• A) investing activity
• B) activity that would not appear on the cash flow statement
• C) financing activity
• D) operating activity

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Definitions:

Utility

A measure of satisfaction or happiness that a consumer gains from consuming a good or service.

Income

The financial gain received by an individual or business, typically in the form of wages, salaries, or profits, for providing labor or capital or through investing.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party or parties to be charged, with the purpose of preventing fraud and perjury in the performance and enforcement of agreements involving significant matters.

Written Document

A composed material that records information in written form for communication or archival purposes.