Question: Assume that the direct method is used to prepare the operating activities section of the statement of cash flows. Which related balance sheet account will

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows. Which related balance sheet account will explain the difference between revenues on the income statement and cash collected from customers?

A. Accounts Receivable

B. Accounts Payable

C. Cost of Goods Sold

D. Inventory

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