What Would Be the Proper Ranking of the Following in Order

question 29

Multiple Choice

What would be the proper ranking of the following in order of decreasing acidity (most acidic on left) ?

• A) 4 > 2 > 1 > 3
• B) 3 > 1 > 4 > 2
• C) 2 > 4 > 1 > 3
• D) 3 > 2 > 4 > 1
• E) 2 > 4 > 3 > 1

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Definitions:

Direct Method

The direct method is a way of preparing cash flow statements where actual cash flows from operating activities are reported instead of adjustments from net income.

Direct Approach

A method used in accounting that focuses on the immediate recognition of revenues and expenses when they are incurred, without adjusting for accruals.

Indirect Approach

A method used in the preparation of the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.