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:

Chronic Kidney Disease

A long-standing disease that gradually deteriorates the function of the kidneys.

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The period of time spent in the womb from conception until birth, typically measured in weeks.

Peripartum Period

The time frame shortly before, during, and after childbirth, typically considered to encompass the last few weeks of pregnancy through the first few weeks postpartum.

Abortus

An embryo or fetus that has been expelled from the uterus before it is able to survive independently, typically due to a miscarriage.