1. On the Statement of Cash Flows, a decrease in Accounts Receivable is added. This is because:

a. The amount of credit sales revenue represents the amount of cash received on accounts receivable.

b. The amount of credit sales revenue is less than the cash collected on accounts receivable.

c. The amount of credit sales revenue is more than the cash collected on accounts receivable.

d. The amount of credit sales revenue is less than the amount of the cash sales revenue.

2. On the Statement of Cash Flows, a loss on the sale of property, plant, and equipment is added in the operating section. This is because:

a. This loss is a non-cash item.

b. This loss cannot be recognized due to conservatism.

c. The company has received cash for the property, plant, and equipment.

d. This loss has brought in cash.