Cash Collected from Accounts Receivable Is Shown on the Cash

question 13

Multiple Choice

Cash collected from accounts receivable is shown on the cash flow statement as a(n) :

• A) operating activity
• B) investing activity
• C) financing activity
• D) either as an operating activity or as a financing activity

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Definitions:

Acquisitions

The process or action of acquiring control of another company or business entity through purchase or merger.

Original Investment

The initial amount of money invested in a business or project.

Venture Capitalists

Investors who provide capital to startups and early-stage companies with high-growth potential in exchange for equity or an ownership stake.

Ventures

Refers to new business activities or projects that involve risk but have the potential for significant reward.