Identify the Section of the Statement of Cash Flows (A-D)

question 98

Multiple Choice

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.
-Increase in accounts receivable

• A)Operating activities
• B)Financing activities
• C)Investing activities
• D)Schedule of noncash financing and investing

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement, allowing for easy comparison and analysis of different-sized companies.

Cost Of Goods Sold

Costs directly linked to the creation of products sold by a company, including expenses for materials, labor, and overhead.

Horizontal Analysis

An analysis technique that evaluates trends over time by comparing financial statement line items or ratios across multiple periods.

Financial Statement Data

Information presented in financial statements, including the balance sheet, income statement, and cash flow statement, to inform users about a company's financial status.