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

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

Quizplus · Accepted Answer

A decrease in accounts receivable means that less money is owed from customers, which indicates that cash has been received. Therefore, it is added to sales to determine the cash received from customers.

To Determine Cash Received from Customers for the Cash Flow