$$\begin{array} { l l } \text { Dividends received } & 16,000 \\\text { Interest paid } & 20,000 \\\text { Interest received } & 42,000\end{array}$$

question 61

Multiple Choice

$$\begin{array} { l l } \text { Dividends received } & 16,000 \\\text { Interest paid } & 20,000 \\\text { Interest received } & 42,000\end{array}$$
-With regard to the above information,which of the following is acceptable as part of preparation of the statement of cash flows? $\begin{array}{lr}&\text { Cash from operating activities } & \text { Cash from/(used by) investing activities } \\\hline a.&\text { \$0 } & \$ 42,000 \\b.&\$ 58,000 & (\$ 20,000) \\c.&\text { \$0 } & \$ 38,000 \\d.&\$(20,000) & \$ 58,000\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.

Credit Sales

Sales made on credit, meaning payment is to be received after the delivery of goods or services.

Credit Card Discount

Fee charged by the credit card company for its services.