Royer Corporation Engaged in This Transaction

question 145

Multiple Choice

Royer Corporation engaged in this transaction:
Collected accounts receivable.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

• A) Does not represent a cash flow
• B) Operating activities section
• C) Financing activities section
• D) Investing activities section

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Definitions:

Understandability

This refers to the quality of financial information that makes it comprehensible to users who have a reasonable knowledge of business and economic activities.

Liabilities

Financial obligations of a business that represent claims against its assets by outsiders.

Stockholders' Equity

Represents the ownership interest of shareholders in the assets of a company, calculated as total assets minus total liabilities.

Creditors' Risk

The risk to lenders that a borrower will not repay a loan or other credit extended, potentially leading to financial loss.