When Using the Direct Method,which of the Following Should Be

question 46

Multiple Choice

When using the direct method,which of the following should be reported as a source of cash from operating activities?

• A)Credit sales
• B)Depreciation expense
• C)Collections from customers
• D)Sale of a building
• E)Sale of treasury shares

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Definitions:

Undersupply

A condition where the available quantity of a particular good or resource is less than the demand for it.

All-or-None Response

A principle stating that the strength of a response of a nerve or muscle fiber is not dependent on the strength of the stimulus.

Excitatory Signals

Electrical or chemical signals that increase the likelihood of a neuron firing, promoting neural activity.

Action Potential

A temporary shift in the electrical charge of a neuron's membrane, leading to the transmission of a nerve impulse.