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:

Atkinson and Shiffrin

Psychologists who proposed a model of memory in the 1960s, known as the multi-store or modal model, which includes the sensory register, short-term memory, and long-term memory.

Memory Storage

Memory Storage is the process of retaining information in the brain over time through the encoding, storage, and retrieval of experiences and learned information.

Conscious Experience

The subjective awareness of one's thoughts, feelings, and surroundings.

Working Memory

A cognitive system that holds information temporarily available for processing and manipulation; crucial for reasoning and guidance of decision-making and behavior.