The Direct Method for the Preparation of the Operating Activities

question 155

Multiple Choice

The direct method for the preparation of the operating activities section of the statement of cash flows:

• A)Separately lists each major item of operating cash receipts and cash payments.
• B)Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
• C)Reports a different amount of cash flows from operations than if the indirect method is used.
• D)Is required if the company is a merchandiser.
• E)Is required by the FASB.

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Definitions:

Participative Leadership

Participative leadership is a management style where leaders involve team members in the decision-making process, enhancing collaboration and commitment.

Task-Oriented

An approach or behavior focused primarily on completing tasks and achieving goals, often with less emphasis on interpersonal relationships.

People-Oriented

A leadership or management style focused on the development, satisfaction, and well-being of team members or employees.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives that guide individuals or teams toward achieving desired outcomes.