When the direct method is used to determine the net cash flow from operating activities, if accounts receivable increase over the accounting period, the change in accounts receivable is:

Multiple Choice

• added to the change in the cash account to calculate cash collected from customers.

• subtracted from sales revenue to calculate the cash collected from customers.

• added to sales revenue to calculate the cash collected from customers.

• subtracted from the change in the cash account to calculate cash collected from customers.

Cash flows from investing includes everything, except the:

Multiple Choice

• purchase of property, plant and equipment.

• sale of property, plant and equipment.

• receiving dividends and interest.

• disposal of property, plant and equipment.