Assume That the Direct Method Is Used to Prepare the Operating

question 79

Multiple Choice

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Which related balance sheet account will explain the difference between revenues on the income statement and cash collected from customers?

• A)Inventory
• B)Accounts Payable
• C)Cost of Goods Sold
• D)Accounts Receivable

---

Definitions:

Service Workers

Individuals employed in the service sector, providing intangible goods and services to consumers, such as healthcare, hospitality, and retail services.

Violence

The use of physical force or power, threatened or actual, against oneself, another person, or against a group or community, that either results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.

Firefighters

Trained professionals dedicated to extinguishing fires, rescuing individuals, and preventing the spread of fires, often involved in medical aid and disaster response.

Bankers

Professionals involved in the banking industry, dealing with the management of financial institutions, transactions, and the provision of financial services.