In the Statement of Cash Flows, an Increase in the Accounts

question 28

Multiple Choice

In the statement of cash flows, an increase in the accounts receivable balance from the beginning of the period to the end of the period would:

• A) be added to net income because this represents earned revenues that have not been collected.
• B) be subtracted from net income because this represents earned revenue provided by operating earnings.
• C) be added to net income because this means that revenues were less than cash collected.
• D)be subtracted from net income because this means that revenues were more than cash collected.

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Definitions:

Experimental Method

A research methodology that involves manipulating one variable to determine if changes in one variable cause changes in another.

Correlational Method

A research strategy that examines the extent to which two variables are naturally related, without manipulating any of the variables.

Psychometric Approach

A method in psychology that involves measuring mental capacities and processes through standardized tests.

Psychometric Method

A methodological approach in psychology that involves the measurement of mental functions, abilities, and processes through standardized tests and questionnaires.