The Collection of Accounts Receivable Results in a Cash ____________________

question 88

Short Answer

The collection of accounts receivable results in a cash ____________________ reported in the operating activities section of the statement of cash flows using the indirect method.

---

Definitions:

Total Liabilities and Equity

The sum of all liabilities (what a company owes) plus the owners' equity (the original investment plus any retained earnings).

Exchange Rates

The rate at which one currency can be exchanged for another, affecting international trade and investments.

Exchange Gain/Loss

Exchange gain or loss results from foreign currency transactions due to changes in exchange rates between the initial transaction and settlement dates or reporting dates.

Functional Currency

The chief monetary unit in the leading economic area where an organization conducts operations, utilized in its financial statements.