Which of the Following Items Involving Current Trade Accounts Receivable

question 53

Multiple Choice

Which of the following items involving current trade accounts receivable is most likely to appear in a statement of cash flows?

• A) The balance in the allowance for doubtful accounts
• B) The change in net sales
• C) Sales returns and allowances
• D) Collection of an account previously written off

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Definitions:

Department

A department refers to a distinct area, division, or branch of an organization with specific responsibilities and functions.

Profit Center

A segment or division within a company for which direct revenue and expenses are calculated, often treated as its own business for assessing profitability.

Investment Center

A division or unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated on its profitability and return on investment.

Financial Measures

Quantitative indicators used to assess aspects of a company's financial performance, such as profitability, liquidity, and solvency.