Under the Direct Method of Preparing the Statement of Cash

question 89

Multiple Choice

Under the direct method of preparing the statement of cash flows,cash receipts from operating activities do NOT include:

• A)collection of note receivable.
• B)collections from customers.
• C)receipt of interest on investments.
• D)receipt of dividends on investments.

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Definitions:

Operationalized

The process of defining a concept or variable in measurable terms to facilitate its identification and study within research.

Construct

An abstract idea, concept, or theory that is created for the purpose of scientific research.

Measurable

Capable of being quantified or expressed as a quantity or in numerical terms.

Item Response Theory (IRT)

A theory and related statistical models that examine the relationship between the latent traits of individuals and their performance on test items.