Asked by Forest Dumont on Jun 19, 2024
Verified
A decrease in accounts receivable from year one to year two:
A) operating activities section
B) investing activities section
C) financing activities section
D) does not represent a cash flow
ASPE
Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada, focusing on simplicity and cost-effectiveness.
Accounts Receivable
Accounts receivable represents money owed to a company by customers for products or services delivered but not yet paid for.
Operating Activities
Activities that relate to a company’s primary business operations, including revenue and expense transactions affecting net income.
- Elucidate the variations between financing, investing, and operating activities as depicted in the cash flow statement.
Verified Answer
KJ
Kerine JohnsonJun 24, 2024
Final Answer :
A
Explanation :
A decrease in accounts receivable indicates that more cash has been collected from customers, which is an operating activity.
Learning Objectives
- Elucidate the variations between financing, investing, and operating activities as depicted in the cash flow statement.