Martinez Installations Company Uses the Direct Method to Prepare Its

question 96

True/False

Martinez Installations Company uses the direct method to prepare its statement of cash flows.Martinez has reported sales revenues of $200,000 on its income statement for 2017.If the balance in Accounts Receivable has increased by $10,000 during the year,then $10,000 needs to be added to $200,000 to calculate collections from customers.

---

Definitions:

Formal Business Plan

A comprehensive document that outlines the strategic direction, goals, and operational plans of a business.

Action

The act or process of doing something, typically to achieve an objective or accomplish a goal, often requiring decision-making and initiative.

Practice

The repeated exercise or application of an activity or skill to achieve proficiency.

Entrepreneurship

The process of initiating a business or businesses, facing financial dangers with the expectation of profit.