Which of the Following Statements Is Most Likely to Be

question 61

Multiple Choice

Which of the following statements is most likely to be right?

• A) The method of preparing the operating activities section of a statement of cash flows which adjusts net income to remove the effects of deferrals and accruals for revenues and expenses is the direct method.
• B) The method of preparing the operating activities section of a statement of cash flows which reports its cash inflows from operations followed by its cash outflows for operations is the indirect method.
• C) The FASB prefers the indirect method of preparing the operating activities section of the statement of cash flows.
• D) Most companies use the indirect method of preparing the operating activities section of the statement of cash flows.

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Definitions:

Iodide Ions

Negatively charged ions of iodine, essential for thyroid gland function and hormone production.

Calcium Ions

Electrically charged calcium atoms that play a crucial role in various cellular processes including muscle contraction, neurotransmission, and enzyme activity.

Acid

A substance that donates hydrogen ions or protons and accepts electrons, often associated with a sour taste and capable of turning blue litmus paper red.

Prions

Infectious agents composed of protein in a misfolded form, which can cause neurodegenerative diseases.