Final answer:
The receipt of $2,000 plus the service sales tax from a client by Simms Accountants impacts the cash flow from operating activities by increasing the cash inflows. The tax collected is also recorded as a liability until it is remitted to the state government.
Step-by-step explanation:
When Simms Accountants charged a client $2,000 cash plus a 6% service sales tax for services provided, the cash received from this transaction, including the tax, would be recorded in the company's financial statements. Since the company is receiving cash, this would increase the cash balance, which is a component of the company's current assets. Aside from this, there is also the recognition of service revenue, which would increase the total revenues in the income statement. The 6% service sales tax collected on top of the $2,000 would be initially recorded as a liability, as this amount is owed to the state government and must be remitted in the future.
However, when considering the cash flow from operating activities, this is affected because it is part of the core business operations. Receipts from customers, which include both the services provided and the tax collected, are a component of cash inflows in the operating activities section of the cash flow statement. Therefore, the cash flow from operating activities is positively impacted by the receipt of $2,000 plus the calculated service sales tax of $120 (6% of $2,000).