Tri-City Installations Company Uses the Direct Method to Prepare Its

question 86

True/False

Tri-City Installations Company uses the direct method to prepare its statement of cash flows.Tri-City has reported sales revenues of $200,000 on its income statement for 2018.If the balance in Accounts Receivable has increased by $10,000 during the year,then $10,000 needs to be added to $200,000 to calculate collections from customers.

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Definitions:

Allocated Efficiently

refers to the optimal distribution of resources so that it maximizes the net benefit received from their use.

Soviet Union

A former federal socialist state in Northern Eurasia that existed from 1922 to 1991, composed of multiple Soviet republics.

Fuel Standard Requirements

Regulations that set specific benchmarks for the composition or performance of fuels used in vehicles to reduce environmental impact.

Federal Tax

Taxes imposed by the federal government on income, property, and goods and services, used to fund public services and government operations.