Which of the following is an example of a cash inflow from an operating activity?
a. Collection of cash relating to a note receivable
b. Sale of property, plant, and equipment
c. Collection of an account receivable from a credit sale
d. None of these
Introduction:
A cash flow statement normally breaks out an organization’s cash sources and uses for the period into three classifications: cash flow from operating activities, cash flow from investing activities, and cash flow from financing exercises.
To choose:
Which of the following is an example of a cash inflow form an operating activity?
Explanation for correct answers:
Option (c) collection of an account forma a credit sale, is the normal transaction of the business because company sold some goods on credit basic so money will be recover in future then it’s a part of the normal operating activity.
Explanation for incorrect answers:
Option (a) Collection of cash relating to a note receivable, this activity related...
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