Accounts Receivable from Sales to Customers Amounted to $40,000 and $32,000

question 18

Multiple Choice

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

• A) $118,000
• B) $110,000
• C) $102,000
• D) $150,000

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Definitions:

Unilateral

Describes actions, decisions, or obligations imposed or undertaken by one party without the consent or cooperation of others.

Contract Failure

Circumstances where a contractual agreement is not honored by one or more parties involved, leading to breach and possible legal consequences.

Public

Pertains to the general population or community at large, often in contrast to private or individual interests.

Private

Pertaining to or owned by an individual or entity not affiliated with the government or public sectors.