During the Year the Balance in the Accounts Receivable Account

question 83

Multiple Choice

During the year the balance in the Accounts Receivable account increased by $6,000. In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

• A) subtract the $6,000 from the sales revenue reported on the income statement.
• B) add the $6,000 to the sales revenue reported on the income statement.
• C) subtract the $6,000 from the cost of goods sold reported on the income statement.
• D) add the $6,000 to the cost of goods sold reported on the income statement.

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