On the statement of cash flows prepared using the direct method, cash from customers would be sales plus
A) an increase in accounts receivable
B) an increase in accounts payable
C) a decrease in accounts receivable
D) a decrease in accounts payable

Question

Quizplus · Accepted Answer

A decrease in accounts receivable indicates that cash has been collected from customers, thus it is added to sales to calculate cash from customers.

On the Statement of Cash Flows Prepared Using the Direct