Which Method of Preparing the Statement of Cash Flows Would

question 153

Multiple Choice

Which method of preparing the statement of cash flows would show increases in accounts receivable being subtracted from net income?

• A)the direct method
• B)the indirect method
• C)accrual basis method
• D)No method shows increases in accounts receivable being subtracted from net income.

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Definitions:

Expenditure

The amount of money spent by an individual, organization, or government on goods and services.

GDP

GDP, or Gross Domestic Product, measures a country's economic output in terms of the total value of all goods and services produced within its borders in a specific time period.

Microeconomics

The study of how households and firms make decisions and how they interact in markets.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, including topics such as growth, inflation, and unemployment.