Match the Following Activities with the Appropriate Section of the Statement

question 37

Multiple Choice

Match the following activities with the appropriate section of the statement of cash flows.
-Cash received from stockholders in exchange for common stock.

• A)Financing activity
• B)Investing activity
• C)Operating activity

---

Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for sales on credit.

Credit Policies

Guidelines that a company follows to determine the creditworthiness of customers, terms of credit, collection procedures, and how much credit to extend.

Accounts Receivable

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

Cash-flow Management

The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.