Where does "Vendor Non Trade Receivables" go under on a Cash Flow statement? Change in Short-term...

Where does "Vendor Non Trade Receivables" go under on a Cash Flow statement?

Change in Short-term Investments

Change in Net Receivables

Change in Note Receivable

Change in Inventory

Change in Other Current Assets

Expert Solution

It would be Option E - Change in other current Asset

Explanation -

Change in Short term investment - Only short term investment undergo in this category. Vendor Non trade receivables are not an investment

Change in net receivables - Debtors (Goods and Services) go in this category.

Change in note receivaables - Promissory note can classified in this category.

Change in inventory - Inventory transactions can be classified in this category. Vendor Non trade receivables are not inventory related transaction.

Change in other current asset - It is the correct answer as Vendor Non trade receivables are the type of current asset which does not satisfy the conditions of being trade receivable. If company give advance to its employee then it is asset of company and it would be reported in other current asset. so in cashflow statement it would be reported under this category.

Therefore, Answer E Change in other current asset is correct.

ekkarill92 answered 1 year ago

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