To determine cash received from customers for the cash flow statement using the direct method, an increase in accounts receivable is added to sales.

Name: To determine cash received from customers for the cash flow statement using the direct method, an increase in accounts receivable is added to sales.
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Question

Quizplus · Accepted Answer

To determine cash received from customers using the direct method, an increase in accounts receivable is subtracted from sales, because it represents sales that were made but not yet collected in cash.

To Determine Cash Received from Customers for the Cash Flow