The First Line Item in the Operating Activities Section of a Spreadsheet

question 28

Multiple Choice

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

• A)Cash.
• B)Cash received from customers.
• C)Increase (decrease)in accounts receivable.
• D)Net income.
• E)Adjustments to net income.

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Definitions:

In Stock

Indicates that items are available for purchase and can be delivered or picked up immediately, as they are present in the inventory.

Close

The final step in a sales process where the salesperson secures the agreement of the customer to purchase.

Modified T-Account Close

A closing technique where the salesperson lists the pros and cons of purchasing a product in a T-account format to help the prospect make a decision.

T-Account

A T-account is a visual representation of a ledger account that depicts a business transaction's effect on a company's accounts.