Orders Are Not Entered onto the Cash Flow Statement as Cash

question 34

Multiple Choice

Orders are not entered onto the cash flow statement as cash receipts because you ________.

• A) don't get the cash until the customer actually pays for the order
• B) might get them confused with revenue on the income statement
• C) will have a more accurate cash flow statement if you enter them once a month
• D) might get a cancellation

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Definitions:

Physiological

Relating to the functions and processes of living organisms and their parts, including physical and chemical processes.

Self-Actualization

The achievement or actualization of personal talents and potential, often regarded as a universal motivation or necessity within every individual.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Physiological Need

Basic physical requirements necessary for human survival, such as food, water, and sleep, which must be met to ensure health and well-being.