B is corrent. In a statement of cash flows in which the operating activities section is prepared using the direct method, the cash collected from customers would equal the accrual-basis sales revenue plus/minus any decrease/increase in accounts receivable account.
A is incorrect. Cash collected from customers is not sales revenue plus AR at the beginning of the year. In a statement of cash flows in which the operating activities section is prepared using the direct method, the cash collected from customers would equal the accrual-basis sales revenue plus/minus any decrease/increase in accounts receivable account.
C is incorrect. Cash collected from customers is not sales revenues less the decrease in AR. In a statement of cash flows in which the operating activities section is prepared using the direct method, the cash collected from customers would equal the accrual-basis sales revenue plus/minus any decrease/increase in accounts receivable account.
D is incorrect. Cash collected from customers is not the same as sales revenue. In a statement of cash flows in which the operating activities section is prepared using the direct method, the cash collected from customers would equal the accrual-basis sales revenue plus/minus any decrease/increase in accounts receivable account.
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