Aboard Company Began the Current Year with the Following

question 23

Multiple Choice

Aboard Company began the current year with the following:

During the current year,the following events occurred:

At the end of the current year,Aboard showed a balance in gross accounts receivable (before the allowance for doubtful accounts) of $16,800.
What amount would be shown as an operating cash inflow in the statement of cash flows under the indirect method?

• A)$21,000
• B)$22,000
• C)$30,000
• D)$28,200

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Definitions:

Unrealized Gain

The increase in value of an asset that has not been sold yet, thus not realized as actual profit.

Trading Security

A type of investment that is bought and held primarily for selling them in the near term to profit from price changes.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of the principal at maturity.

Available-For-Sale

A classification for investments in securities that a company plans to sell but does not classify as actively traded or held to maturity.