Accounts Receivable Arising from Sales to Customers Amounted To $¥ 800,000$

question 93

Multiple Choice

Accounts receivable arising from sales to customers amounted to $¥ 800,000$ and $¥ 700,000$ at the beginning and end of the year, respectively. Income reported on the income statement for the year was $¥ 2,800,000$ . Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

• A) \(¥ 2,800,000\).
• B) \(¥ 2,900,000\).
• C) \(¥ 3,500,000\).
• D) \(¥ 2,700,000\).

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Definitions:

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the consequences, usually due to a contract or agreement.

Criminal Actions

Activities that are punishable by law, typically involving harm to individuals or the society at large.

Top Managers

Senior executives responsible for making strategic decisions and overseeing the overall operations of an organization.

Asymmetric Information

A situation in which one party in a transaction has more or significantly better information than the other, leading to an imbalance in the transaction.