Question: When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an increase in the accounts

When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an increase in the accounts receivable balance?

Multiple Choice

  • a. Add the increase to net income

  • b. Add the increase to cash collections from customers

  • c. Deduct the increase from net income

  • d. Add the increase to cash payments to suppliers

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Are these correct Saved Help Save & Exit When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper treatment of...

Q:

1)Which section of the statement of cash flows may be prepared using either the direct method or the indirect method? Multiple Choice All of these answers are correct. Operating activities Financing...

Q:

1-3 Question 1 10 pts Under the indirect method, which of the following items would be subtracted from net income to determine the cash flow from operating activities? o Loss on the sale of equipment...

Q:

When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an increase in the accounts receivable balance? Multiple Choice Add the...

Q:

TB MC Qu. 14-53 (Static) When using the indirect method to complete... When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an...

Q:

When using the indirect method to complete the cash flows from operating activities section, what is the proper treatment for an increase in the Inventory account? Multiple Choice a. Deduct the...

Q:

When the indirect method is used to prepare the statement of cash flows, what is the starting point of the operating activities section? Net income as reported on the income statement Total assets as...

Q:

a) The 2016 income statement of Phillips Co. reported total sales revenue of $241,000; the 2015 balance sheet showed a balance in accounts receivable of $38,500 while the 2016 balance sheet showed a...

Q:

Part 1-Choose the best answer from the given choices (10 points cach, 350 points total) L. Treasury Stock A. has a normal credit balance. B. decreases stockholders' equity C. is recorded as an...

Q:

When using the indirect method of complete the cash flows from operating activities section, what is the proper treatment for a decrease in the inventory account? A. Deduct the increase from net...

Q:

Give C code which is consistent with the following x86-64 assembly language functions f1, f2, and f3: f1: imulq %rsi, %rdi leaq (%rdi,%rdx), %rax ret f2: addl %edx, %esi movslq %esi, %rsi movl...

Q:

On December 30, year 1, Wayne Corporation issued 1,000 of its 8%, 10- year, $ 1,000 face value bonds with detachable stock warrants at par. Each bond carried a detachable warrant for one share of...

Q:

5. On July 1, 20X1, a landlord received $36,000 cash from a tenant, covering rent from July 1, 20X1, through June 30, 20X2. The payment received was credited to Unearned Rent Income. Assuming no...

Q:

Elizabeth Island Airways scher. Ellermalogenal airine serving the New England area, recently suffered a major cras. As a result passengers are considered to be shy choose As there comer when making...

Q:

List the main decision areas and concepts in employee compensation management. page 457

Q:

Describe the major administrative tools used to manage employee compensation. page 461

Q:

Explain where the United States stands from an international perspective on pay issues. page 477