Final answer:
The collection of accounts receivables affects the operating activities section of the statement of cash flows, resulting in a positive adjustment as cash inflow.
Step-by-step explanation:
When it comes to the statement of cash flows, the collection of accounts receivables affects the operating activities section. This is because accounts receivable represent money owed to a company by its customers for goods or services provided.
When a company collects its accounts receivables, it is increasing its cash inflow. This increase is recorded as a positive adjustment in the operating activities section of the statement of cash flows.
For example, if a company had $10,000 in accounts receivable at the beginning of the year and collected $8,000 during the year, the cash inflow from the collection of accounts receivables would be $8,000.