When the Direct Method Is Used to Determine the Net

question 60

Multiple Choice

When the direct method is used to determine the net cash flow from operating activities,if accounts receivable increase over the accounting period,the change in accounts receivable is:

• A)added to the change in the cash account to calculate cash collected from customers.
• B)subtracted from sales revenue to calculate the cash collected from customers.
• C)added to sales revenue to calculate the cash collected from customers.
• D)subtracted from the change in the cash account to calculate cash collected from customers.

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A powerful factor or force that decisively affects the nature or outcome of something.

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Components or elements that are unique to a particular situation, environment, or condition, affecting outcomes in a distinct way.

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Generating a financial gain or benefit, typically measured as the difference between revenue and expenses.