Assume the Direct Method Is Used to Compute Net Cash

question 16

Multiple Choice

Assume the direct method is used to compute net cash flows from operating activities.For this item extracted from the financial statements-Decrease in Accounts Receivable-indicate the effect on cash receipts from sales by choosing one of the following:

• A)Add to Sales to arrive at cash receipts from sales.
• B)Subtract from Sales to arrive at cash receipts from sales.
• C)Not used to adjust Sales to arrive at cash receipts from sales.

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Definitions:

Sequential Intellectual Stages

Phases of cognitive development through which individuals progress, one after the other, each stage building upon the achievements of the previous ones.

Piaget

is associated with Swiss psychologist Jean Piaget, known for his pioneering work in the study of child development and cognitive psychology.

Conservation Concept

In cognitive development, the understanding that properties such as mass, volume, and number remain the same despite changes in the forms or appearances of objects.

Cognitive Development

The progression of learning and development of mental processes, such as thinking, reasoning, and problem-solving, from infancy through adulthood.