Under the Direct Method of Preparing the Statement of Cash

question 70

Multiple Choice

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

• A) payments to suppliers.
• B) collections from customers.
• C) receipt of interest on investments.
• D) receipt of dividends on investments.

---

Definitions:

Electronic Type

Pertains to devices or systems that operate based on the flow of electrons through semiconductors, vacuum tubes, or other components.

Thermal Overload Units

Protective devices in electrical circuits that interrupt power in the event of an overload to prevent overheating, often integrated into motors and circuit breakers.

Full Load Amperes

The current drawn by an electric motor when operating at its designed capacity.

Overload Heaters

Protective devices installed in motor starters to prevent motors from overheating by mimicking the thermal characteristics of the motor under overload conditions.