2 100 points MC Qu. 149 Assume a company uses the direct method. Assume a compan

Question

2 100 points MC Qu. 149 Assume a company uses the direct method. Assume a company uses the direct method to prepare ts stebement of cash flows. the company's Accounts Receivable ncrese during the accounting period, the change in Accounts Receivable s O added to the chenge in the Cesh account to caiclate cash collected rom customers O subtracted from Seles Revenue to ceiculate the cash collected fiom customens Oadded to Sales Revenue to caculate the cesh colected tom customers O subtracted from the chenge in the Cesh account to calculate cash collected trom customers

Explanation / Answer

Solution:-

149:- subtracted form sales revenue to calculate the cash collected from customers

Explanation:-

If the accounts receivable balance had increased, the cash collected from customers would be determined by subtracting the increase in the accounts receivable balance from the sales balance because an increase in accounts receivable means your customers owe you the cash for their purchases (your sales).

Q 27:- assets that are short-term, highly liquid, and are purchased by the entity within three months of maturity.

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