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:

Vestibulocochlear Nerve

The eighth cranial nerve that transmits sound and equilibrium (balance) information from the inner ear to the brain.

Auditory Tube

Also known as the Eustachian tube, it connects the middle ear to the nasopharynx and helps equalize pressure between the middle ear and the atmosphere.

Seasonal Inventory

Inventory stockpiled in anticipation of seasonal demand peaks to ensure adequate supply and optimal service levels.

Demand

The desire and willingness of consumers to purchase goods or services at a given price over a specific time period.