When the Direct Method Is Used to Determine the Net

question 60

Multiple Choice

When the direct method is used to determine the net cash flow from operating activities,if accounts receivable increase over the accounting period,the change in accounts receivable is:

• A)added to the change in the cash account to calculate cash collected from customers.
• B)subtracted from sales revenue to calculate the cash collected from customers.
• C)added to sales revenue to calculate the cash collected from customers.
• D)subtracted from the change in the cash account to calculate cash collected from customers.

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Definitions:

VALS Framework

A tool used to categorize consumers into eight distinct types based on their responses to a questionnaire, which assesses psychological traits that influence purchasing behavior.

Consumer Groups

Organizations or collectives formed to protect the interests of consumers by advocating for consumer rights and providing education on various issues.

Segmenting Variable

Characteristics of individuals or groups used to divide a market into segments for targeted marketing.

Pre-Qualified

The state of having been evaluated and deemed eligible for something, such as a loan or service, based on preliminary criteria.