Under the Direct Method of Preparing the Statement of Cash

question 62

Multiple Choice

Under the direct method of preparing the statement of cash flows, to determine collections from customers:

• A) ending accounts receivable is added to sales.
• B) the net change in accounts receivable is added or subtracted from sales.
• C) beginning accounts receivable is subtracted from sales.
• D) beginning accounts receivable is added to sales.

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Definitions:

Psychosexual Stage

A concept in Freudian psychoanalysis that refers to the different stages of a child’s development, each characterized by a focus on pleasure from a specific body area.

Adolescents

Young people in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Displacement

In psychology, it's a defense mechanism where an individual shifts negative emotions or impulses from the original source to a less threatening person or object.