The Following Items Were Reported on the Balance Sheets and Income

question 21

Multiple Choice

The following items were reported on the balance sheets and income statement for Collin Inc.: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows using the indirect method?

• A) as an addition to sales
• B) as a deduction from sales
• C) as an addition to net income
• D) as a deduction from net income

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Definitions:

Shift Workers

Employees who are scheduled to work at different times outside the typical 9 to 5 workday, including evening, night, or rotating shifts.

Overtime Rules

Regulations that govern how employees are to be compensated for work performed beyond their standard working hours.

Exempt Employees

Workers who are excluded from the minimum wage and overtime pay requirements of the Fair Labor Standards Act, typically due to their job duties and salary level.

Consolidated Omnibus Budget Reconciliation Act

A U.S. federal law that provides for the continuation of group health coverage that otherwise might be terminated.