When the Direct Method Is Used to Determine Operating Cash

question 44

Multiple Choice

When the direct method is used to determine operating cash flows,how is the collection of cash from customers shown on the statement of cash flows?

• A) as an operating activity
• B) as an investing activity
• C) as a financing activity
• D) as a noncash investing and financing activity

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Definitions:

Mnemonic

A memory aid, often using patterns of letters, ideas, or associations to help in remembering something.

Musical Notation

A system of symbols and marks used to represent musical sounds in written form, facilitating the composition and performance of music.

Maintenance Rehearsal

Rote repetition of material in order to maintain its availability in memory.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with complex cognitive behavior, personality expression, decision making, and moderating social behavior.