The following items were obtained from the financial records: $\begin{array}{ll}
\text { Accounts receivable, December 31, 2014 } &\$ 100,000\
\text { Accounts receivable, December 31, 2013 } &144,000 \
\text { Sales for 2014 } & 945,000
\end{array}$ How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?
A)As an addition to sales.
B)As a deduction from sales.
C)As an addition to net income.
D)As a deduction from net income.

Question

The following items were obtained from the financial records: $\begin{array}{ll}
\text { Accounts receivable, December 31, 2014  } &\$ 100,000\
\text { Accounts receivable, December 31, 2013 } &144,000 \
\text {  Sales for 2014 } & 945,000
\end{array}$ How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?
A)As an addition to sales.
B)As a deduction from sales.
C)As an addition to net income.
D)As a deduction from net income.

Quizplus · Accepted Answer

The Answer of The following items were obtained from the financial records: $\begin{array}{ll}
\text { Accounts receivable, December 31, 2014  } &\$ 100,000\
\text { Accounts receivable, December 31, 2013 } &144,000 \
\text {  Sales for 2014 } & 945,000
\end{array}$ How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?
A)As an addition to sales.
B)As a deduction from sales.
C)As an addition to net income.
D)As a deduction from net income.

The Following Items Were Obtained from the Financial Records How Would the Change in Accounts Receivable Be Reported in