Which Method of Preparing the Operating Activities Section of a Statement

question 86

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows reports its cash inflows from operations followed by its cash outflows for operation?

• A) The direct method
• B) The indirect method
• C) Both the direct method and the indirect method
• D) Neither the direct method nor the indirect method

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Definitions:

Observed Time

The actual time recorded during the observation of a task or process.

Allowance Factor

A factor used to adjust or allocate resources, often in production or scheduling, to account for uncertainties or inefficiencies.

Observations

Observations are individual instances or data points collected through experiments, surveys, or other data collection methods, used to analyze trends, patterns, or behaviors in research.

Performance Rating

An evaluation of an employee's work performance, often used to guide decisions on promotions, raises, and development.