The Following Items Were Reported on the Balance Sheets and Income

question 165

Multiple Choice

The following items were reported on the balance sheets and income statement for Power Wash Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

• A)As an addition to sales.
• B)As a deduction from sales.
• C)As an addition to net income.
• D)As a deduction from net income.

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Definitions:

Modification

The act of making changes or alterations to a document, contract, or agreement, often requiring mutual consent of involved parties.

Discharges

The release or dismissal from a legal obligation, debt, or responsibility, such as the discharge of a bankruptcy or contractual duty.

Uniform Commercial Code

A set of laws that provide legal standards and regulations for commercial transactions and business dealings.

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws enacted by legislative bodies.