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:

Equilibrium

A state in which market supply and demand are balanced, and as a result, prices become stable.

Market

A place or system where buyers and sellers interact to trade goods, services, or resources.

Price

The money total set, required, or given as remuneration for something.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.