For Each of the Following Items, Indicate Whether It Would

question 37

Multiple Choice

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b) .
-Collections on accounts receivable

• A)Direct
• B)Indirect

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Definitions:

Expand

To increase in size, number, or importance, often relating to businesses aiming to grow through increased operations, product lines, or market reach.

Equilibrium

The condition that exists when quantity supplied and quantity demanded are equal. At equilibrium, there is no tendency for price to change.

Incentive

A factor, often financial, that motivates individuals or organizations to perform certain actions or behave in a desired way.

Long Run

A period in economics sufficient for all adjustments to be made, including physical capital and not just prices.