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9. A companys accounts receivable decreased from the beginning to the end of the year. In the companys statement of cash flows (operating activities shown using direct approach), the cash collected from customers would be

A: Sales revenues plus accounts receivable at the beginning of the year. B: Sales revenues plus the decrease in accounts receivable from the beginning to the end of the year. C: Sales revenues less the decrease in accounts receivable from the beginning to the end of the year. D: The same as sales revenues.

10. A loss on the sale of machinery in the ordinary course of business should be presented in a statement of cash flows (using indirect approach for operating activities) as a(n)

A: Deduction from net income. B: Addition to net income. C: Inflow and outflow of cash. D: Outflow of cash.

11. In a statement of cash flows (using indirect approach for operating activities) an increase in inventories should be presented as a(n)

A: Outflow of cash. B: Inflow and outflow of cash. C: Addition to net income. D: Deduction from net income.

12. Bay Manufacturing Co. purchased a 3-month US Treasury bill. In preparing Bays statement of cash flows, this purchase would

A: Have no effect. B: Be treated as an outflow from financing activities. C: Be treated as an outflow from investing activities. D: Be treated as an outflow from lending activities.

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