If the Calculation of Cash Flows from Operating Activities Starts

question 27

Multiple Choice

If the calculation of cash flows from operating activities starts with net income,the company:

• A)is using the net income method.
• B)will remove the effects of all noncash items included in the calculation of net income.
• C)is using the direct method.
• D)will add all noncash items not included in the calculation of net income.

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