When Using the Direct Method of Reporting Cash Flows from Operating

question 72

True/False

When using the direct method of reporting cash flows from operating activities, increases in accounts receivable are subtracted from revenues to arrive at cash receipts from customers.

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Definitions:

NH3

Ammonia, a colorless gas with a pungent smell, consisting of nitrogen and hydrogen (NH3).

Diatomic Elements

Molecules composed of only two atoms, of the same or different chemical elements.

Atoms

The basic units of matter and the defining structure of elements, consisting of a nucleus surrounded by electrons.