Assume a Company Uses the Direct Method to Prepare Its

question 185

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:

Drug Tolerance

A physiological condition where increased doses of a drug are required to achieve effects originally produced by lower doses, due to the body's adaptation to the drug.

Unfamiliar Setting

An environment or situation that is not recognized or known by an individual, often causing discomfort or anxiety.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Classical Conditioning

A process of education where two stimuli are persistently paired together; a reaction initially brought about by the second stimulus is eventually brought about by the first stimulus alone.