Which of the following would be reported as an investing activity in a company’s statement of...

Which of the following would be reported as an investing activity in a company’s statement of cash flows?

1) Collection of proceeds from a note payable

2) Collection of a note receivable from a related party

3) Collection of an overdue account receivable from a customer

4) Collection of a tax refund from the government

Expert Solution

Notes payable or receivable always includes interest component. When notes receivable from a related party are collected, it is considered as cash flow from investing activity.

Option 2)

Collection of a note receivable from a related party

ekkarill92 answered 2 years ago

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