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

question 100

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. Income reported on the income statement for the year was $203,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

• A) $203,000.
• B) $208,000.
• C) $238,000.
• D) $198,000.

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Definitions:

Estates

Historically, a social or political class; in modern terms, often refers to a substantial area of land or property.

Benjamin Franklin

A Founding Father of the United States, renowned for his contributions to the drafting of the Declaration of Independence and the U.S. Constitution, as well as his inventions and scientific discoveries.

Dividends

The part of corporate profits paid to its shareholders.

Payroll Tax

Taxes imposed on employers or employees, often calculated as a percentage of the salaries that employers pay their staff, funding social security and healthcare programs.