When Using the Direct Method, How Is the Collection of Cash

question 87

Multiple Choice

When using the direct method, how is the collection of cash from customers shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

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Definitions:

Start/Stop Control

A control mechanism designed to initiate or halt a process, typically used in machinery, applications, or systems requiring user interaction to begin or end operations.

Motor Control

The process of starting, stopping, and regulating the speed and torque of an electric motor.

XIC

An acronym for "Examine if Closed," a command in Programmable Logic Controllers (PLCs) that checks if a specific input or condition is true.

Start Contact

A control element in circuits, often represented in schematics, that initiates the flow of electricity, starting a process or operation.