Which of the Following Statements Is Correct

question 36

Multiple Choice

Which of the following statements is correct?

• A)A decrease in the accounts receivable balance means that credit sales exceeded cash collections from customers.
• B)The accounts receivable balance increases when cash collected from customers exceeds credit sales.
• C)A decrease in accounts receivable is deducted from net income when determining cash flow from operations.
• D)An increase in accounts receivable is deducted from net income when determining cash flow from operations.

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Definitions:

Ayn Rand

A Russian-American novelist and philosopher known for her philosophy of Objectivism and her novels advocating individualism and capitalism.

Theory

A logical explanation or framework for understanding how various aspects of the world relate to each other.

Forms

The visible shapes, structures, or configurations that objects or concepts can take, often used to classify or understand things in various contexts.

Hedonism

The moral philosophy advocating that the fulfillment of desires or pleasure constitutes the greatest value and ultimate goal of human existence.