Accounts Receivable Arising from Sales to Customers Amounted to $35,000

question 50

Multiple Choice

Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively.Net income reported on the statement of income for the year was $120,000.Ignoring the effect of any other adjustments, the cash flow provided (used) by operating activities, prepared using the indirect method, is

• A)$120,000.
• B)$125,000.
• C)$155,000.
• D)$115,000.

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Definitions:

Business Law

The body of law that governs the rights, relations, and conduct of persons, companies, organizations, and businesses.

Enforceable Rules

Regulations or directives that are legally binding and can be enforced by law.

Commercial Relationships

Interactions and connections between businesses or between businesses and consumers in the context of buying, selling, and trading goods or services.

Civil Law

A legal system based on written codes or statutes, as opposed to common law, which is based on judicial precedents.