For Each of the Following Activities That May Take Place

question 75

Multiple Choice

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question.
-Increase in accounts receivable balance

• A)Increase cash from operating activities
• B)Decrease cash from operating activities
• C)Increase cash from investing activities
• D)Decrease cash from investing activities
• E)Increase cash from financing activities
• F)Decrease cash from financing activities
• G)Noncash investing and financing supplement

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Definitions:

Accounts Receivable

Represents amounts due from customers for credit sales, expected to be received in the near future.

Managing

The process of planning, organizing, leading, and controlling resources to achieve organizational objectives efficiently and effectively.

Calendar-year

A one-year period starting on January 1 and ending on December 31, used as the fiscal year by many companies.

Interest Income

Income earned on various forms of investments like savings accounts, certificates of deposit, bonds, and loans.