During 2016, the Accounts Receivable Balance of Dickerson Corp

question 25

Multiple Choice

During 2016, the accounts receivable balance of Dickerson Corp.increased.Which of the following statements is true?

• A) This indicates that Dickerson sold more than it collected in cash during the period.
• B) This increase is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method.
• C) This increase is added to sales recognized on the income statement to determine the cash collections from customers during the period.
• D) This increase is considered only when the operating activities section of a statement of cash flows is prepared under the indirect method.

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