Under the Direct Method of Preparing the Statement of Cash

question 37

Multiple Choice

Under the direct method of preparing the statement of cash flows, which statement is correct regarding the method of computing interest revenue?

• A) Sales plus a decrease in interest receivable
• B) Interest revenue plus a decrease in interest receivable
• C) Interest revenue plus an increase in interest receivable
• D) Interest revenue less a decrease in interest receivable

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Definitions:

Regulatory Controls

Mechanisms put in place by a government or regulatory body to manage operations and behaviors within industries to ensure compliance with legal standards and to protect public interest.