Which Method of Preparing the Operating Activities Section of a Statement

question 76

Multiple Choice

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

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

---

Definitions:

Own Experiences

Personal encounters or events that an individual has lived through.

Simple Database

A basic and user-friendly database system that allows for the storage, retrieval, and management of data in a structured format.

Message of Inquiry

A message of inquiry is a communication sent to request information or clarification on a specific topic, issue, or situation.

Body Language

Non-verbal communication through gestures, facial expressions, and other body movements.