When Cash Is Received in Payment of an Account Receivable

question 63

Multiple Choice

When cash is received in payment of an account receivable, which section of the Statement of Cash Flows is affected?

• A) Cash Flow from Operating Activities
• B) Cash Flow from Investing Activities
• C) Cash Flow from Financing Activities
• D) There is no effect on the Statement of Cash Flows.

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Definitions:

Midpoint

The middle point of a line segment, exactly equidistant from both ends.

Cumulative Percent Frequency

A measure used in statistics to describe the percentage of data points that fall within a certain category or below a specified value, accumulating from the start of the data set.

Total Number

The aggregate count or sum of all units or elements within a specified set or collection.

Data Set

A collection of related data points or values that have been gathered to be analyzed or used as a basis for decision-making.