The Following Items Were Reported on the Balance Sheets and Income

question 107

Multiple Choice

The following items were reported on the balance sheets and income statement for the Flying Mullet Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

• A) As an addition to sales
• B) As a deduction from sales
• C) As an addition to net income
• D) As a deduction from net income

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Definitions:

Track Changes

A feature in word processing software that records modifications made to a document, allowing for the review and acceptance or rejection of those changes.

Combine Command

A command used in various software and programming languages to merge or join multiple sets of data or files into a single entity.

Combine Command

An action in computing and data processing that merges two or more sets of information into a single set.

Accept All Changes

The process of approving all the modifications made to a document during the review phase, usually in a word processor's tracked changes feature.