Collection from debtors is a cash inflow from activity.

operating

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

investing

No worries! We‘ve got your back. Try BYJU‘S free classes today!

financing

No worries! We‘ve got your back. Try BYJU‘S free classes today!

payment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A operating
Collection from debtors is a cash inflow from operating activity because it is related to operating activities or day-to-day activities of the business.

Suggest Corrections

Similar questions

Collection from debtors are _________ under cash flow from operating activities in indirect method.

Particulars	Rs.
Cash sales	$20, 000$
Cash collection from debtors	$1, 30, 000$
Bad debts during the year	$15, 000$
Cash discount to debtors	$5, 000$
Debtors as on $1 - 1 - 2015$	$25, 000$
Debtors as on $31 - 12 - 2015$	$55, 000$

35, 000

30, 000

20, 000

20 %

40, 000

1 %

Explain how the following may be ascertained from incomplete records

(a) Opening capital and closing capital

(b) Credit sales and credit purchases

(d) Closing balance of cash

Join BYJU'S Learning Program