Assume a Company Uses the Direct Method to Prepare Its

question 26

Multiple Choice

Assume a company uses the direct method to prepare its statement of cash flows.If the company's accounts receivable increase during the accounting period,the change in accounts receivable is:

• A)added to the change in the cash account to calculate cash collected from customers.
• B)subtracted from sales revenue to calculate the cash collected from customers.
• C)added to sales revenue to calculate the cash collected from customers.
• D)subtracted from the change in the cash account to calculate cash collected from customers.

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Definitions:

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without interference from the researchers.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.

Experimental Method

A research methodology that involves the manipulation of one variable to determine its effect on another variable, often with the use of control and experimental groups.