Asked by Madilyn McPherson on Jun 10, 2024
Verified
A decrease in accounts receivable of $16,000 for the year
A) decreases cash flow from operating activities by $8,000.
B) increases cash flow from operating activities by $8,000.
C) decreases cash flow from operating activities by $16,000.
D) increases cash flow from operating activities by $16,000.
Cash Flow
The total amount of money being transferred into and out of a business, especially affecting liquidity.
Operating Activities
These activities are directly related to the production, sale, and delivery of a company’s products and services, representing the primary source of revenue and expense in the business.
Accounts Receivable
Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
- Explore the ramifications of shifts in balance sheet accounts on cash flow patterns.
- Scrutinize the effect that modifications in inventory, receivables, and payables have on the cash flow from operating activities.
Verified Answer
Learning Objectives
- Explore the ramifications of shifts in balance sheet accounts on cash flow patterns.
- Scrutinize the effect that modifications in inventory, receivables, and payables have on the cash flow from operating activities.
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