If the Cash Collections from Customers Amounted to $634,800 and the Accounts

question 47

Multiple Choice

If the cash collections from customers amounted to $634,800 and the Accounts Receivable account decreased $19,400 during the same period,sales for the period were:

• A) $615,400
• B) $634,800
• C) $654,200
• D) indeterminable from the information given

Distinguish between different types of property (real, personal, tangible, and intangible).

Define fee simple absolute ownership and recognize its significance.

Identify examples of real property versus personal property.

Comprehend the legal distinctions between movable and immovable property.

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Definitions:

Indirect Approach

A method used in the preparation of the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Financing Activities

Transactions and events where cash is raised from or repaid to investors, such as issuing shares or borrowing.

Direct Approach

A method in financial statement reporting that presents major classes of operating cash receipts and payments.