When Using the Direct Method, Which of the Following Should

question 52

Multiple Choice

When using the direct method, which of the following should be reported as a source of cash from operating activities?

• A) Sale of treasury shares.
• B) Collections from customers.
• C) Credit sales.
• D) Depreciation expense.
• E) Sale of a building.

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Definitions:

Relaxation Response

A physiological state of deep rest that alters the physical and emotional responses to stress.

Neuroticism

A personality trait characterized by a long-term tendency to experience negative emotions such as anxiety, anger, or depression.

Personality Trait

A facet of personality on which people differ from one another.

Hyperreactivity

An excessive or abnormal response to external stimuli, often seen in sensory processing disorders or in the context of psychological conditions.