Under the Direct Method of Preparing the Statement of Cash

question 125

Multiple Choice

Under the direct method of preparing the statement of cash flows, which statement is CORRECT regarding the method of computing interest revenue?

• A)Interest revenue plus a decrease in interest receivable
• B)Sales plus a decrease in interest receivable
• C)Interest revenue less a decrease in interest receivable
• D)Interest revenue plus an increase in interest receivable

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Definitions:

Glycolysis

The metabolic pathway that breaks down glucose to pyruvate, generating energy in the form of ATP, in the cytoplasm of cells.

Activate Glucose

The process of converting glucose into a form that can be used by cells for energy or stored for future use.

NAD+

Nicotinamide adenine dinucleotide, a coenzyme involved in redox reactions, acting as an electron carrier.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating ATP and NADH, occurring in the cytoplasm of cells.