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Which of the following does not reflect the accounting and impact on the statement of cash flows for the sale or transfer of accounts receivable?

Which of the following does not reflect the accounting and impact on the statement of cash flows for the sale or transfer of accounts receivable?

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  • Receivable sales are not reported in the statement of cash flows as they do not represent collections from the end customers and therefore are not part of operating cash flows.

  • Receivable sales create an operating cash inflow on the cash flow statement.

  • Receivable sales transfer future operating cash flows into the current period.

  • Receivable transfers that are secured borrowings have no effect on operating cash flows.

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