On the Statement of Cash Flows Prepared Using the Direct

question 20

Multiple Choice

On the statement of cash flows prepared using the direct method, cash from customers would be sales plus

• A) an increase in accounts receivable
• B) an increase in accounts payable
• C) a decrease in accounts receivable
• D) a decrease in accounts payable

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Definitions:

Feature Analysis

The process of breaking down and examining the elements or structure of information, often used in cognitive psychology to understand how people recognize patterns and objects.

Processing

In psychology, refers to the operations carried out by the brain to interpret and organize sensory information into meaningful patterns.

Additive

A substance added to something in small quantities to improve or preserve it. In another context, it refers to a process or principle involving the addition of elements or quantities.

Subtractive

A process or method that involves removing elements or aspects to simplify or reduce complexity.