What Is the Impact on the Cash Flow Statement from an Increase

question 165

Multiple Choice

What is the impact on the cash flow statement from an increase in notes receivable,assuming the indirect method is used?

• A)A decrease in the cash flow from operating activities
• B)An increase in the cash flow from operating activities
• C)An increase in the cash flow from financing activities
• D)An increase in the cash flow from investing activities

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Definitions:

Estimated Costs

Costs that are predicted or forecasted based on current information and experience, used for budgeting and planning purposes.

Installment Contract

A contract that requires payments to be made in regular intervals over a period in exchange for goods or services.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the costs of completion, disposal, and transportation.

Repossessed

The act of taking back an asset, typically used when a borrower fails to make payments on a secured loan.