Identify the Section of the Statement of Cash Flows (A-D)

question 41

Multiple Choice

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.
-Amortization of patent

• A)Operating activities
• B)Financing activities
• C)Investing activities
• D)Schedule of noncash financing and investing

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Definitions:

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects cash from credit customers.

Sales Returns

Goods returned by customers to the seller after the sale has occurred, typically due to defects or dissatisfaction.

Allowances

Reductions or adjustments to the carrying amount of assets or the amount of a liability, often related to accounts receivable or inventory to reflect possible uncollectibility or diminution in value.