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:

Teleological View

A perspective that interprets actions or events in terms of their purpose or goal rather than their cause.

Mechanistic

Pertaining to a viewpoint or theory that likens complex systems to mechanical objects, assuming all phenomena result from physical forces and can be explained by the laws of physics.

Kant's Two Worlds

Refers to Immanuel Kant's distinction between the phenomenal world (which we can know through senses) and the noumenal world (the thing in itself, which we cannot directly know).

World of Nature

The physical universe and all its natural processes and phenomena, excluding human creations and interventions.