Bob owns a used car dealership. All of his revenue is from cash sales or in-hous
ID: 2479360 • Letter: B
Question
Bob owns a used car dealership. All of his revenue is from cash sales or in-house financing. Which method of presenting cash flows should he use and why? Multiple Choice: A. Direct method because some of his sales do not deal with direct cash B. Indirect method because he has sales that deal with financing customers and giving them loans C. Direct method because all of his sales deal with cash or items that will be quickly converted to cash D.Indirect method because of the amount of money he has to invest in inventory
Explanation / Answer
C. Indirect method because he has sales that deal with financing customers and giving them loans