Asked by
Carlos Andres
on Oct 10, 2024Verified
Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.
Accounts Receivable
Funds that customers owe to a company for products or services already provided but not yet compensated.
Sales Revenue
The total income received by a company from its sales of goods or services, before any expenses are subtracted.
- Convert reported income statement data into a cash basis for generating the statement of cash flows.
Verified Answer
MM
Learning Objectives
- Convert reported income statement data into a cash basis for generating the statement of cash flows.
Related questions
On the Statement of Cash Flows, the Sales Adjusted to ...
The Selling and Administrative Expense Adjusted to a Cash Basis ...
Kuma, IncHad Cost of Goods Sold of $106,000 for the ...
Wister Corporation Had Sales of $462,000 for the Just Completed ...
Cridberg Corporation's Selling and Administrative Expenses for Last Year Totaled ...