When preparing the the operating section using the direct method, which of the following statements is true?
A) A decrease in accounts payable is added to expenses.
B) A decrease in accounts receivable is added to sales.
C) Depreciation expense is deducted from cash flows.
D) Gains on sales of long-term assets are omitted from cash flows.
Answer: D
Business
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Revenue recognition method in which companies recognize revenues, costs, and gross profit as progress is made toward completion on a long-term contract, using a basis or standard (such as the cost-to-cost basis) to measure the progress toward completion at interim dates.
(a) asset-liability approach (b) percentage-of-completion method (c) franchisee (d) bill-and-hold arrangemen
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Dispute settlement is one the advantages of ________
A) a requirement workshop B) observation C) an interview D) a questionnaire
Business