Which Statement Is TRUE Regarding the Direct Method of Preparing

question 67

Multiple Choice

Which statement is TRUE regarding the direct method of preparing the statement of cash flows?

• A)Depreciation is a cash payment under operating activities.
• B)Sales on credit is listed under cash receipts in the operating section.
• C)Collections from customers are the cash receipts listed in the operating section.
• D)Proceeds from the issuance of long-term debt is listed as a cash receipt in the operating section.

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Definitions:

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered but not yet paid for.