Question

Indicate which of the following current assets and current liabilities are operating accounts (O) and thus included in the adjustment of net income to cash flow from operating activities and which are cash (C), investing (I), or financing (F) activities

Note Receivable

Answer 1

Operating accounts (O) are current assets and current liabilities included in the adjustment of net income to cash flow from operating activities. Note Receivable is a current asset and an operating account (O).

Step-by-step explanation:

Operating accounts (O) are current assets and current liabilities included in the adjustment of net income to cash flow from operating activities. Cash (C), investing (I), and financing (F) activities are not included in this adjustment.

Note Receivable is a current asset and is an operating account (O) because it represents a claim to receive cash in the future from a customer for goods sold or services provided. This account would be included in the adjustment of net income to cash flow from operating activities.