A Company Uses the Indirect Method to Prepare the Statement

question 106

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to accounts receivable?

• A)The increase of $66,000 will be subtracted from net income.
• B)The increase of $66,000 will be added to net income.
• C)The increase of $66,000 will be added to sales revenue.
• D)The increase of $66,000 will be subtracted from sales revenue.

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Definitions:

Advance Scheduling

Booking an appointment several weeks or even months in advance.

Cluster Scheduling

The scheduling of similar appointments together at a certain time of the day or week.

Combination Scheduling

A method in operations management of integrating multiple tasks or operations schedules into a cohesive plan.

Time-specified Scheduling

A method of appointment scheduling in healthcare where each patient is allocated a specific time slot.