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:

Deleting New Products

The process of removing recently introduced goods or services from the market or production lines, often due to underperformance or strategic realignment.

Program Manager

A professional responsible for overseeing the successful planning, execution, and closure of a program, which consists of multiple, related projects.

Organisational Design

The process of structuring an organization in order to effectively manage resources, operations, and achieve goals.

Lateral Communication

The exchange of information, ideas, or requests between individuals at the same level within an organizational hierarchy.