If the Direct Method Is Used to Prepare a Statement

question 20

Multiple Choice

If the direct method is used to prepare a statement of cash flows,credit sales may not automatically create a cash inflow because

• A)some receivables may be uncollectible.
• B)sales from a prior period may be collected in the current period.
• C)sales from the current period may be collected in a future period.
• D)All of these choices.

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Definitions:

Elaine, Arkansas

A town in the United States known for the Elaine Massacre of 1919, where racial tensions led to a violent conflict and the deaths of many African Americans.

Deputy Sheriff

An officer of the law who serves in the capacity of assisting or acting in place of the sheriff, often involved in law enforcement duties within a county.

African Americans

A term referring to citizens or residents of the United States who have ancestry from the black racial groups of Africa.

North

Generally refers to the northern part of a country or specific region, often associated with specific demographic, economic, or cultural characteristics distinct from the southern part.