How Would Cash Collected from Customers Appear on the Statement

question 108

Multiple Choice

How would cash collected from customers appear on the statement of cash flows?

• A)Under the indirect method
• B)As an investing activity
• C)As an operating activity
• D)As a financing activity

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Definitions:

Molding Department

A specialized section in a manufacturing facility where molding processes, such as injection or blow molding, are used to shape plastic or other materials into products.

Work In Process Inventory

Goods partially completed in the manufacturing process, not yet ready for sale.

Merchandise Inventory

This term refers to the finished goods acquired for resale by a company, forming a crucial part of its current assets on the balance sheet.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.