Using the Direct Method

question 43

Multiple Choice

Using the Direct Method
For the following question(s) , indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method.
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When using the direct method, where is the collection of cash from customers shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

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Definitions:

Childhood Experiences

Events and interactions during the early years of life that significantly influence one's personality, behavior, and psychological development.

Projection

Projection is a defense mechanism in psychology where an individual attributes their own unacceptable thoughts, feelings, or motives to another person.

Childhood Experiences

Early life events and influences that contribute to the shaping of an individual’s personality, behaviors, and perceptions throughout their development.

Socio-Historical Context

The combination of social and historical circumstances at a particular time that influence the environment in which an individual or community lives.