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:

Disequilibrium Principle

A concept in developmental psychology suggesting that cognitive growth occurs through processes of assimilation and accommodation, driven by experiences of imbalance or disequilibrium.

Effective Reinforcer

A stimulus that, when presented after a behavior, significantly increases the likelihood of that behavior occurring again in the future.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes typically leading to a change in beliefs or behaviors to reduce the discomfort.

Social Learning Theory

A theory that suggests people can learn new behaviors and information through observing others, emphasizing the importance of modeling, imitation, and social reinforcement.