Under the Direct Method of Preparing the Statement of Cash

question 106

Multiple Choice

Under the direct method of preparing the statement of cash flows,cash receipts from operating activities do NOT include:

• A)collection of long-term note receivable.
• B)collections from customers.
• C)receipt of interest on investments.
• D)receipt of dividends on investments.

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Definitions:

Situational Demands

The specific needs, challenges, or requirements presented by particular circumstances or environments at a given time.

Organisational Form

The structure and design of an organization, which determines its mode of operation and influences its efficiency and effectiveness.

Organisational Structure

Organisational structure is a system of tasks, workflows, reporting relationships and communication links.

Communication Channels

The mediums through which information is transmitted from a sender to a receiver, such as emails, phone calls, and social media.